Fort Wayne controller projects $8.8 million shortfall for 2026 budget as SB 1 and circuit breaker cuts take effect

Controller Pat Roller told the Fort Wayne Common Council committee on Oct. 7 that the proposed 2026 city budget faces an $8.8 million shortfall driven largely by state-calculated property-tax reductions and changes under Senate Bill 1.

"It was a privilege to work for Mayor Tucker, and her leadership and decisiveness was critical to putting this budget together," Roller said as he introduced the spending plan, which keeps 2026 expenses at or below approved 2025 levels while preserving planned pay increases and public-safety hiring.

Roller said the Department of Local Government Finance (DLGF) has estimated a 2026 circuit-breaker (property-tax cap) revenue loss of $25,100,000 — up from last year’s estimate of $11,500,000 — and noted the actual 2025 revenue loss exceeded that year’s estimate by $2,100,000. Using the DLGF estimate, Roller said the city would need to borrow or use roughly $8.8 million in cash reserves to balance the budget as presented.

Why it matters: The DLGF estimate and Senate Bill 1 together change how property-tax and income-tax revenues flow to the city, putting near-term pressure on general-fund and other property-tax–supported accounts and forcing officials to weigh one-time cash use against preserving…