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Proposal to eliminate local homestead tax credit being reintroduced

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By: Liz Gelardi

INDIANAPOLIS, Ind. (Sept. 8, 2014) - A proposal that could fund the future of early childhood education will be introduced at Monday's city-county council meeting. A group of republican council members will reintroduce the proposal to eliminate the local homestead tax credit.

Mayor Greg Ballard has proposed using the funds to pay for an expanded pre-school programs. The city estimates eliminating the tax credit will bring in $7.5 million a year. Under the mayor's plan $5 million will go to pre-k programs and $2.5 million to law enforcement.

A group of republican council members are reintroducing the proposal. Councillor Marilyn Pfisterer said once the credit is eliminated council can discuss how to spend the money.

“And I think that’s a subject that can easily be debated, what we need to do now is take the first step," said Marilyn Pfisterer, City-County Council District 14.

Council democrats said they are working on their own plan to fund early childhood education without raising taxes.

“So we want to see a pre-k program it just comes down to funding. How do we fund this initiative," said Maggie Lewis, City-County Council President.

The proposal to eliminate the tax credit was originally tied to a proposal to raise the public safety tax. Council members separated the proposals during a committee meeting on August 20th. A measure to raise the public safety tax from 0.35% to 0.50% moved forward, council is expected to vote on it tonight.