The Town of Cannelton recently found out its 2014 budget will be greatly reduced because of tax caps.
Cannelton Mayor Mary Snyder says the $150,000 reduction to the town's general fund is a significant blow, but she says they will survive it, as long as each department agrees to only spend what they have to.
Snyder says that in the past year, the town of Cannelton didn't generate enough tax revenue for the Department of Local Government Finance to okay the full $798,000 the town asked for.
So, the town was given $150,000 less by the DGFL. Snyder says she didn't anticipate such a large reduction and that grants and cuts will be needed this year.
"We'll cut every department. All the departments are on board. They have agreed not to spend unless it's an absolute emergency. Salaries have to be paid, and police cars, streets, and cemeteries, all still has to be taken care of. But we'll figure out a way to take care of it," Snyder says.
She says she hopes in time the state government eases tax caps for small towns like Cannelton, so that budget issues like this don't continue into the future.