Mayor Whitfield on Monday evening introduced the City of Lawrence's proposed 2026 budget and warned that state changes, rising retirement contributions and other cost increases together create more than $7.1 million in fiscal pressure for the coming year. "Tonight, I am honored to present the 2026 proposed budget for the City Of Lawrence," he said.

The mayor told the Lawrence Common Council that multiple factors are tightening the city's finances: reductions in one-time federal relief, the fiscal effect of recent state legislation, larger property tax circuit-breaker losses, a roughly 3% increase in retirement contribution requirements for public safety personnel, and higher insurance liability costs. He said those items together amount to more than $7.1 million in added pressure on the 2026 budget.

The budget introduction is procedural and not a final adoption. Whitfield described the document as a starting point for council review and staff analysis. He invited councilors, his chief of staff and the city controller to participate in a short-term review of vacant positions and urged the public and council members to attend upcoming budget workshop meetings.

Why it matters: the administration says the proposed plan aims to preserve core services — including police, fire and emergency services — while maintaining an operating reserve and positioning the city to compete for state matching grants for infrastructure.

Key details provided by the mayor:

• One-time federal American Rescue Plan Act (ARPA) funding accounted for roughly $3,600,000 in the 2025 spending plan and will not be available in the same form for 2026.

• The administration identified a roughly $1.1 million revenue impact in 2026 tied to recent state legislation (referred to in remarks as Senate Enrolled Act 1).

• The Indiana Department of Local Government Finance (DLGF) projects circuit-breaker losses for Lawrence in 2026 that are $2,400,000 higher than 2023 levels, which Whitfield characterized as a 130% increase in lost revenue.

• The Indiana Public Retirement System (INPRS) is requiring about a 3% increase in retirement contributions for public safety personnel, which the mayor said will cost the city about $400,000.

• The mayor estimated the combined impact of these items at "over $7,100,000." He also called out rising liability insurance costs as an additional pressure on operating budgets.

Whitfield said the city finished 2024 under budget, retaining more than $2,000,000 in unspent funds, and he credited the council for passing a wheel tax and a motor vehicle excise surtax earlier in the year. Those local revenue measures will take effect in 2026 and, the mayor said, were adopted in part so Lawrence can qualify for Indiana's Community Crossings matching grant program for street maintenance and improvements.

The mayor introduced city controller Terry Faulker and consultants Tim Berry and Cole Ferguson during the presentation but did not present a motion for adoption. He described the 2026 proposal as "responsible and forward looking," saying it seeks to preserve essential services, support employees and invest in infrastructure and economic growth.

Next steps: the administration will hold budget workshops with councilors and staff in the coming weeks to refine the proposal and consider potential adjustments. Whitfield said a short review of vacant positions will be conducted with council participation to identify possible savings.

"This disciplined approach gives us stability in uncertain times," Whitfield said in closing, and he thanked council members and city staff for their work on the budget.