(La Porte, IN)- The city of La Porte is preparing for tough financial times. On Monday night, the City Council approved a budget cut that trims spending for the remainder of the year by
$580,000.
Mayor Tom Dermody said the cuts were a first step to prepare for more scaling back of spending that will have to be done from next year’s budget. He said state property tax caps will mean a 22-percent loss in city revenue in 2021. Overall, the tax caps will mean over $3 million in lost revenue for the city.
Dermody said it appears another $500,000 will be lost from fewer dollars collected by the state in areas like income tax because of higher unemployment caused by COVID-19.
According to Dermody, the goal is not to have any job lay-offs resulting from the reductions in spending.