Gary finances threatened by state comptroller’s revenue distribution error

Over the past three years, an error by Indiana’s state comptroller’s office has resulted in $12.2 million in casino tax revenue being mistakenly allocated to Gary instead of East Chicago and Michigan City. The oversight stems from a provision in a 2019 law meant to provide financial safeguards for these cities after the relocation of Gary’s casino to a more lucrative location. East Chicago was shorted $6.5 million, and Michigan City $5.7 million, reported by NWI.com.

The error was discovered recently, raising concerns about Gary’s financial stability as it faces a potential revenue loss of $6 million in its 2025 budget. Lawmakers are debating how to rectify the mistake without causing undue harm to Gary, which had no role in the error. Proposals include spreading Gary’s repayment over several years, using state reserves to cover shortfalls, or potentially voiding the hold harmless agreements altogether.

While some lawmakers favor immediate restitution for East Chicago and Michigan City, others stress the importance of minimizing the financial impact on Gary. Discussions are ongoing, with solutions expected before the legislative session ends in April.