A bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City is one step closer to House approval.
On Wednesday, House Bill 1448 was amended and passed onto a third reading in the Indiana House of Representatives.
The bill — authored by Rep. Hal Slager, R-Schererville — addresses a state comptroller mistake with supplemental payments that were added into state law during the 2019 session.
Funds were sent to Gary that should have been distributed to East Chicago and Michigan City to ease the financial burden following the move of the Majestic Star casinos to Hard Rock Casino Northern Indiana, located along Interstate 80/94, according to Post-Tribune archives.
Gary owes East Chicago more than $6.4 million and Michigan City more than $5.7 million, according to an amendment. Both cities might receive compensation for any missing funds during the 2025 fiscal year, the amendment said.
Hammond was added in an amendment to the bill that was passed Wednesday. The city could receive payments if they are missing during the 2025 fiscal year.
The amendment also says that the state comptroller can deduct $166,666.67 from Gary to make the supplemental payments. The comptroller cannot deduct more than $2 million in a fiscal year.
Money for supplemental payments will come from the deducted amount and money appropriated by the Indiana General Assembly for making the payments, according to the amendment.
Before the amendment was accepted, House Bill 1448 laid out a three-year plan for Gary’s payments to East Chicago and Michigan City.
For the fiscal year beginning July 1, 2025, approximately $1.4 million should be paid to Michigan City for the funds not paid in fiscal year 2021, according to the bill.
Starting in fiscal year 2026, approximately $2.9 million should be paid to East Chicago and approximately $2.2 million should be paid to Michigan City for funds not paid in fiscal year 2022, according to the bill.
For fiscal year 2027, approximately $3.6 million should be paid to East Chicago and approximately $2.2 million to Michigan City for funds not paid in fiscal year 2023, according to the bill.
Rep. Earl Harris, D-East Chicago, proposed an amendment in a House Ways and Means committee meeting to create a loan from the state that Gary could pay back over eight years, according to Post-Tribune archives. The loan would allow East Chicago and Michigan City to receive their missing funds upfront.
Harris’ amendment failed in committee after an 8-15 vote.
Harris had proposed the amendment in case Hammond is affected once the 2025 numbers were released. Jennifer Thuma, general counsel for the comptroller’s office, previously said Hammond was part of the original 2019 bill but wasn’t included in House Bill 1448 because the city didn’t see a decrease in wagering tax revenue.
Gary officials have repeatedly expressed concern about House Bill 1448, including at a January Ways and Means committee meeting. Mayor Eddie Melton, City Controller Celita Green and Council Vice President Lori Latham, D-1st, spoke at the meeting.
“I realize that the plan forward is going to be critical, but I have to focus on the right now,” Melton said in January, “because even if we were to create a plan to move forward, that will help stretch out those payments. However, this year, and you heard it clearly in testimony, money will be withheld from the city as we speak.”
The House will vote on the bill as a whole at a later date.