SOUTH BEND — Nearly $2.5 million in new federal stimulus funding will soon be headed to South Bend to pay for 13 new city police officers over the next 3 years. Some call it lifesaving money that will keep the streets safer. Others are calling for something else: a tax cut.

The stimulus funding comes in the form of a U.S. Justice Department Community Oriented Policing Services or COPS grant. It is part of $1 billion allocated to the program under the American Recovery and Reinvestment Act of 2009.

Nearly 7,300 police departments across the country applied for approximately $8.3 billion in grants under the program; requesting funding for 39,000 new officers. That includes more than 150 police departments in Indiana.

South Bend is one of only 21 across the state to receive COPS funds under the grant.

"They had to do a ranking, and the ranking really looked at two categories. One was financial distress, anything from communities relying on local option income taxes that were down significantly because of the recess , or in the case of many Indiana communities, the property tax caps providing much of that distress. The second category was both crime rates and community policing," said South Bend Mayor Steve Luecke (D).

South Bend Police Captain Phil Trent says the money will enable the department to return to "full strength."

"This will get us back to full strength of 260 sworn officers, and this will put us in a little bit better position than we thought we'd be in 2010 for sure. We're just going to have to get to work hiring officers now," Trent said.

The additions will mean approximately 4 extra officers per shift, he added.

"Not only does that assist us in reducing our overtime, when we have to replace officers who are sick or on vacation, but it also just adds officers to the shift that can be utilized in more creative ways, not just manning a beat car, but maybe on a burglary patrol or something like that. It really helps us attack crime in a different way," Trent said.

They won't have to wait to start that attack.

The money will come as a "reimbursement grant," meaning the city will have to "front" the first year's $800,000 cost, and then will be paid back by Uncle Sam.

"We've been able to maintain good reserves in the City of South Bend. That's one of the reasons we provide those reserves, to fund cash flow through difficult periods. So, we do have the resources that we can put that money up front, and then receive that reimbursement back," said Luecke.

South Bend had projected a shortfall of 6-7 officers for 2010, even with the addition of approximately $5.2 million in new revenue from county's recently passed 0.25% public safety tax. Luecke had projected the loss of 19 police officers if that tax hike didn't pass.

"In combination with the dollars receiving from the public safety tax, we hope to be back at full strength again," Luecke said.

But, some say the 3-year grant shouldn't mean the addition of funding from taxpayers, but subtraction of funding.

"If South Bend accepts this money, the public safety component of the local option income tax should definitely be repealed. And, I know the Republican elected officials are on board with that," said St. Joseph County Republican Party Chairman Chris Riley.

No elected officials have introduced a formal plan to repeal the local option income tax, but Riley says it's possible that could happen in coming days.

"South Bend announced last week that they're going to create a department of energy with two years of guaranteed funding. Now, South Bend is going to accept $2 million and 13 police officers with only 3 years of guaranteed funding," Riley continued. "When you start adding up all these stimulus projects that are guaranteed for only a short amount of time, aren't we making the kind of imprudent decisions that got South Bend in trouble in the first place?"

There is another troubling component of the grant too, Riley says. Acceptance of the stimulus funding requires the city to provide full funding to keep all 13 new officers for at least the 4th year.

"South Bend has already said, by virtue of asking for an increase in local option income tax, that it can't afford the police officers it has now," Riley said. "What's going to happen in the 4th year, and every year thereafter? Does this mean South Bend is going to come back and ask the taxpayers for more money?"

Luecke says the answer is "no."

"We expect that we will be able to provide funding. At this point, I can't say specifically where that will come from. But, having 3 years gives us time to grow our assessed value and attract additional employment to the community that will provide additional resources as well," he said.

Riley argues that uncertainty about a funding source could end up costing taxpayers in the long run.

"If we can't come up with a plan to sustain the officers when the funding expires, then I think we should reject the money," he says.

He's not the only one suggesting that as an option.

The City of Muncie is considering turning down its share of $1.2 million in COPS grants that would rehire 5 of 6 officers laid off last month during budget cuts. Mayor Sharon McShurley told the Associated Press that the financially strapped city has "no plan in place to pay the officers during the 4th year."

Some argue that's where St. Joseph County's new 0.25% public safety tax comes in.

"We still need that money," said Common Council President Derek Dieter (D). "We don't know how long it will take before this is implemented. And, any of these people that would be hired wouldn't be ready until the end of next year. So, we still have to get to that point."

"We are not rolling in money with this grant," agreed Trent. "The sum of the grant and the sum of the option income tax funds is still going to be less than we had budgeted in 2008. We're still going to have to not replace some civilians that are leaving us, and we're going to do some program restructuring to save money."

"The grant would not have been applied for had we not taken into consideration sustainability for year 4 and beyond. Those 13 officers, when we do get them, we intend to keep them," Trent continued.

South Bend will be one of the few with the option to do so on such a large scale.

In Indiana, only Indianapolis will receive more money, about $11 million under the new grant. Larger area cities like Gary, Grand Rapids, Kalamazoo will get less. Some larger cities like Fort Wayne and Evansville didn't even make the cut to receive any of the funding.

The only other departments in Michiana receiving money under the COPS grant are:

-Michigan City Police Department $592,641 for 3 officers
-City of LaPorte Police Department $382,154 for 2 officers
-Benton Harbor Police Department $192,336 for 1 officer
-Three Rivers Police Department $188,519 for 1 officer

South Bend's 2010 budget began to take shape Tuesday, as well, as city leaders unveiled preliminary proposals on how that new option income tax funding might be spent.

The new tax will raise about $16 million next year. But, city leaders said they will ask each department to submit a "baseline" budget that doesn't account for any of that new funding.

The Common Council will begin to "add back" about $5 million dollars to the police and fire budgets and about $900,000 to the parks department budget. But, with a projected deficit still topping $6 million next year, most other departments will still be asked to trim.

"We're still adhering to cuts. We're still looking to find efficiencies and streamline government. We are not adding back in everything. We just can't," said South Bend Controller Catherine Fanello.

Budget hearings for the police, fire and parks departments will continue Wednesday. City leaders must have a new budget in place by November 1st.