IndiGo Budget Director Justin Burko Presents $257.6M Capital and $153.9M Operating Budget

The IndyGo Board of Directors convened on July 17, 2025, to discuss the proposed budget for the upcoming fiscal year, highlighting significant investments in public transportation infrastructure and operational sustainability. The proposed operating budget stands at $153.9 million, reflecting a 4.85% increase from the previous year, while also implementing a 0% growth strategy compared to the 2024-2025 budget cycle.

Budget Director Justin Burko outlined the strategic approach taken in preparing the budget, emphasizing a zero-based budgeting methodology. This approach requires justifications for each budget item, ensuring alignment with the organization's strategic goals, which include protecting frontline workers, increasing ridership, and ensuring long-term stability.

Key allocations within the budget include $84 million for personnel services, which covers wage increases for union and non-union staff, and $54 million for other services, including paratransit operations and IT maintenance. The budget also anticipates funding for 919.5 full-time equivalent positions, a slight increase from the previous year.

On the revenue side, local property income taxes will account for nearly 60% of the operating budget, with a planned use of $25.9 million in stimulus funds to balance the budget. The capital budget for 2026 is set at $257.6 million, primarily directed towards the construction of the blue line, the third Bus Rapid Transit (BRT) route, and improvements to facilities and fleet replacement.

Burko noted that the capital improvements will be funded through a combination of grant reimbursements, local taxes, and municipal bond sales, with nearly $95 million in bond proceeds expected to support these investments. The board also highlighted the importance of securing grants, which will contribute $142 million to the capital program, underscoring the efforts of the grants team in maximizing funding opportunities.

The meeting concluded with a reminder of the upcoming budget timeline, including a public hearing scheduled for July 31 and a board meeting on August 21 for the formal adoption of the budget. Following board approval, the budget will be presented to the city-county council and the state’s Department of Local Government Finance for final approval.