Red State Update: Indiana

Valparaiso's now got a $1 million budget shortfall--thanks to a typo!

It's a simple two-bedroom home in the small Indiana town of Valparaiso. Two years ago it got a new bathroom and wood floors, as well as some fresh paint.

Now it's being blamed for a $1 million budget shortfall.

"We said, 'Oh, we did a little bit of work on it, but nothing extravagant,' " said Daelyn Charnetzky, 31, said after learning that the value of her house had skyrocketed to $400 million from $121,900, probably due to a keystroke error.

But before the Charnetzkys' mortgage company discovered the mistake, Porter County wrote up a budget anticipating $8 million in property taxes from the couple.

Now the county has learned it's going to have to repay $3.1 million advanced to them by the state.

"We will not be laying off any employees," the city's clerk-treasurer, Sharon Swihart said. "We will not be closing down the City of Valparaiso."

Charnetzky doesn't expect anyone to offer her $400 million for the house, but she is open to selling.

"Half price wouldn't be bad," she said.