Indiana Governor Mike Pence's plan to eliminate the state's business personal property tax has some southern Indiana governments bracing for potential cuts.
On Friday, Mayor Lloyd Winnecke said if the governor succeeds in cutting the business property tax, the city of Evansville would lose $7-million out of it's general fund.
The governor wants to eliminate property taxes on business and manufacturing equipment.
The levy currently provides about a billion dollars to Indiana schools and governments.
Council John Friend said Pence is trying to make the state more attractive to business and create jobs, but Friend said he is concerned the potential $7-million loss could affect city services and personnel.
"You take $7-million dollars out of that fund, that cuts right into the heart of police, fire, and the other employees; the support functions which we don't have," said Friend.
If approved, Friend said the city could have to look at other options such as raising taxes to fill the budget hole.
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