Why MUST matters: 10 reasons Indiana local governments should act now

The Municipal Unit Strategic Taskforce (MUST) process represents one of the most significant local government planning efforts Indiana communities have faced in years. While the process may sound procedural, the implications are substantial: future Local Income Tax (LIT) allocations, service sustainability and long-term fiscal stability are all at stake. 

MUST also creates a significant opportunity for municipalities and counties to influence how future funding decisions are made. Communities that engage early will be better positioned to protect essential services, defend existing revenue streams and advocate for long-term fiscal stability. 

The process brings together municipalities, counties and other local governmental units to evaluate funding structures, discuss allocation priorities and develop recommendations that may influence future policy decisions. 

(For a detailed overview of how the MUST process works, see our “MUST explained” article.) 

Below are 10 reasons why MUST matters and why Indiana local governments should act now, not later. 

1. MUST directly influences future Local Income Tax (LIT) outcomes 

The MUST process creates a formal venue for municipalities and counties to help shape how LIT revenues may be allocated in the future. While outcomes are nonbinding, the discussions and recommendations developed through MUST may significantly influence legislative and policy decisions made by the Indiana General Assembly. 

Communities that fail to participate risk having future funding decisions shaped without their input. 

2. Nonparticipation still has consequences 

Choosing not to engage in the MUST process does not preserve the status quo. Active participation is critical to defending existing revenue streams, advocating for essential public services and ensuring local priorities are reflected in future funding discussions. 

Communities that engage early will be better positioned to protect current funding and prepare for future fiscal realities. 

3. MUST gives local governments a collective voice 

MUST provides a structured forum for municipalities, counties and other local units to communicate shared priorities, operational demands and long-term community goals. 

Coordination among local stakeholders can improve alignment, strengthen advocacy efforts and help communities pursue more equitable outcomes. 

4. LIT allocations support essential local services 

Local Income Tax revenues fund services residents rely on every day, including: 

• Public safety and emergency services 
• Infrastructure and capital investment 
• Staffing and operations 
• Debt service and long-term obligations 
• Economic development and quality-of-place initiatives 

A shift in allocations without careful planning could place these services at risk, potentially affecting staffing levels, capital planning and long-term service delivery. 

5. The MUST process is both technical and political 

MUST negotiations require an understanding of complex financial data, long-term fiscal modeling and the political dynamics between governmental units within a county. 

Balancing competing priorities and reaching consensus will require preparation, collaboration and informed decision-making. 

6. Underfunding risks must be clearly communicated 

Local government units must proactively advocate for their fiscal needs, service obligations and the risks associated with underfunding. Clear communication is essential to help stakeholders understand potential impacts on services, staffing, infrastructure and taxpayers. 

7. MUST outcomes may shape future legislative direction 

While MUST recommendations do not automatically change statute, they may influence how the Indiana General Assembly approaches future tax policy and local government finance discussions. 

The process creates a documented record of local priorities and funding concerns that could shape future policy conversations. 

8. The Dec. 1, 2026 deadline is approaching quickly 

The Indiana Department of Local Government Finance (DLGF) must deliver MUST reports from local taskforces to the Legislative Council by Dec. 1, 2026. 

That leaves limited time for financial analysis, stakeholder outreach, negotiation and consensus-building. Communities that take a “wait and see” approach may underestimate the complexity of the MUST process and later discover that financial modeling, stakeholder coordination and consensus-building require far more time and effort than anticipated. 

9. Early preparation improves negotiating position 

Communities that prepare early by gathering data, modeling financial impacts and understanding peer perspectives enter MUST discussions with greater confidence and credibility. 

Early preparation also helps local governments evaluate risks, understand tradeoffs and engage stakeholders before negotiations intensify. 

10. The cost of waiting is higher than the cost of acting 

The biggest takeaway from MUST is simple: delay creates risk. 

Waiting to engage can weaken a community’s ability to influence outcomes, defend funding levels and maintain service stability. Communities that fail to prepare may face unfavorable outcomes that are difficult to reverse.