Tippecanoe County officials agreed during a budget discussion to take $3,000,000 from the county’s general fund cash balance to reduce a projected shortfall for 2026.

The decision followed staff proposals to lower a reserve target from 97% to 96%, increase the SRO revenue estimate to $350,000 (from $250,000), and modestly raise revenue projections for the health department and a program labeled “carry home” by $2,500 each. County staff initially proposed covering the gap by using $2,000,000 from the general fund cash balance and $1,000,000 from the county’s health insurance fund; after discussion officials agreed instead to use the full $3,000,000 from the general fund.

Why it matters: county staff said the change would close most of a projected $5,000,000 revenue shortfall for 2026. Officials emphasized the move is a one-year fix and flagged the need for longer-term revenue and expense alignment to avoid repeating the same shortfall in future years.

Officials and staff described the budget adjustments that led to the shortfall projection. Participants discussed moving the budget reserve target from 97% to 96% to net a little more than $3,000,000, increasing a School Resource Officer (SRO) revenue figure by $100,000 to $350,000, and small incremental revenue adjustments to the health department and a carry-home program. Staff presented fund-balance charts and reported a projected year-end general fund cash balance of roughly $17,000,000 under current assumptions; some staff said that number could grow to about $18,500,000 under alternative spending assumptions.

Several participants opposed taking money from the health insurance fund, citing unusually high claims this year and a recently experienced large, delayed claim. “I wouldn't suggest taking the million if at all possible,” said Speaker 2, noting claims volatility and the risk of leaving the insurance fund underfunded. Others raised concerns about reducing cash available for investment returns and about using one-time cash to cover recurring costs.

Officials also discussed staffing implications: multiple speakers noted that roughly 85%–87% of the county budget is personnel-related costs, and that some positions were currently unfunded or being held vacant. The personnel committee plans to establish a process to evaluate vacancies before automatically posting and filling positions; several participants said they expect some positions to be reevaluated and possibly redistributed rather than refilled immediately.

Outcome and next steps: participants agreed to take $3,000,000 from the general fund cash balance to reduce the projected shortfall for 2026. The record shows consensus agreement in discussion but no roll-call vote documented in the transcript. Staff and officials said they will continue exploring sustainability options, including revenue adjustments and spending changes, and will review staffing and position-filling procedures later this year and early next year.

The meeting concluded with a motion to adjourn that was seconded; no roll-call vote was recorded in the transcript.