An Indiana House bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City has moved to its third Senate reading.
The Indiana Senate will vote on the bill after its third reading.
House Bill 1448 — authored by State Rep. Hal Slager, R-Schererville — addresses a state comptroller’s mistake with supplemental payments that were signed into law during the Indiana General Assembly’s 2019 session.
Following the move of Majestic Star casinos to Hard Rock Casino Northern Indiana, East Chicago and Michigan City were to receive funds to ease the financial burden. Instead, Gary mistakenly received the cities’ funds.
State Senators Travis Holdman, R-Markle, and Lonnie Randolph, D-East Chicago, sponsored the bill.
Gary owes more than $6.4 million to East Chicago and more than $5.7 million to Michigan City, according to bill documents.
An amendment that passed the House said Gary might also owe money to Hammond if the city is missing funds during the 2025 fiscal year. Hammond was included on the 2019 supplemental payment bill.
Hammond Mayor Tom McDermott previously told the Post-Tribune that Horseshoe Casino has lost about $15-20 million each year since Hard Rock opened.
Gary Mayor Eddie Melton and Michigan City Mayor Angie Nelson Deuitch have both testified during a Senate appropriations committee meeting about how the bill would impact their cities.
In 2024, Michigan City had a shortfall of about $2 million, Deuitch said. Last year, the city’s budget cut about $6 million from the year prior, according to Post-Tribune archives.
Deuitch told senators that she would like Gary to pay Michigan City “in a timely manner.”
“What I don’t want to see is a six, seven, eight-year payback,” she said. “The original was four years, and I would like it to stay at four years.”
House Bill 1448 originally had Gary begin payments this year, but Melton has asked to have the timeline delayed due to fiscal constraints.
Gary has every intention of paying East Chicago and Michigan City, Melton has said.
Money from supplemental payments will come from deducted state comptroller funds and money appropriated by the Indiana General Assembly, according to bill documents. If the payments were withheld this year, Melton said the city would lose about $6 million, which would directly affect police, fire and other necessary resources.
“Our gaming revenue is a significant portion of our budget,” Melton told the committee. “Any fluctuation in that is going to impact how we deliver services to the citizens of Gary.”
