Hot Topics in Local Government for 2025: Taxes and Road Funding Take Center Stage
As 2025 begins, local governments in Johnson County and across Indiana are preparing for fiscal changes that could shape communities for years to come. The Indiana General Assembly convened this month to draft the state’s next two-year budget, with property taxes, road funding, and revenue priorities taking center stage.
Incoming Governor Mike Braun’s campaign pledge to reset property tax bills to 2021 levels has raised both hopes and concerns. Greg Wright, City Controller for Greenwood, emphasized the importance of property taxes in maintaining essential operations.
“Many of our functions are heavily funded by property taxes: police, fire, planning and zoning, parks and recreation, code enforcement, and all of the internal functions that keep the city operating,” Wright said.
“It’s important to recognize that the reason property taxes are used to fund these essential operations is that they are the most stable source of revenue a government can generate,” he added.
Greenwood’s significant population growth (34.7% since 2010) has highlighted the need for careful planning to balance development and infrastructure demands.
“Greenwood has one of the lowest municipal tax rates in the state, despite the large population growth we’ve had,” said Wright. “We’ve been able to leverage the growth in assessed value to fund infrastructure with general obligation bonds and tax increment finance (TIF) dollars.”
However, Wright noted that new infrastructure creates ongoing maintenance costs, which do not grow as quickly as the city’s needs. To address this, Greenwood employs a multi-pronged approach, combining property taxes, TIF funds, bonds, and grants to fund projects while minimizing tax impacts.
Greenwood residents can expect significant public infrastructure improvements this year.
“In 2025, the city will be doing a road reconstruction project in the Country Aire neighborhood using Community Crossings Grant Matching funds,” said Wright. “The city will also be doing several miles of repaving using funds generated by the statewide fuel tax.”
Key projects include the completion of the Cutsinger Road widening initiative and the first phases of the Main Street streetscapes project, which will run from Meridian Street to Polk Street. Roundabouts at Smith Valley Road and Averitt Road, as well as Smith Valley Road and Woodmen Boulevard, are also planned.
“In addition to road projects, we will see construction beginning on Fire Station 95, which will be located east of I-65 near Worthsville Road,” said Wright.
“This station is the city’s first foray into Build-Operate-Transfer (BOT) projects, which helps to better manage the risks of inflation and change orders during the construction process.”
Statewide discussions on property tax reform and road funding are being closely monitored by local officials, as any changes could have large implications for municipal government.
“Should the General Assembly decide to make changes to the current system, I hope that they will consider the immense impacts these changes will have on the ability of local governments to provide for the safety and stability of our communities,” said Wright.
By working with state and federal grants alongside local revenue streams, community leaders in Johnson County are striving to maintain momentum in infrastructure development while balancing fiscal policies that prioritize the needs of residents.