Saint Joseph County auditors present 2026 budget estimates; council hears concerns about mid‑decade tax changes

John Murphy, Saint Joseph County auditor, and county budget staff presented the county's proposed 2026 budget at the council's Sept. 9 meeting, telling the council the general fund is balanced at $90,700,000 and the county's total budget across all funds is approximately $231,000,000. The council held public hearings on multiple budget ordinances and later approved several salary amendments funded outside the general fund.

The presentation outlined revenue and expenditure assumptions that produced a $90.7 million general fund balanced budget and showed the county's total revenues rising about 1.5% from the prior year to $231 million. Murphy said, "Achieved a balanced general fund budget at $90,700,000, which is 39% of the total budget." He and budget staff warned that state changes to property tax policy will tighten revenues further in 2027 and 2028.

Why it matters: the general fund pays many core county services; the county projects limited revenue growth for 2026 and flagged the public safety local income tax fund's reserve as leaner than desirable. Council members repeatedly asked how statewide changes will affect local levies and services in subsequent years.

The presentation and figures Murphy and an analyst who identified himself as Steve Dalton walked council members through the budget letter directives, revenue mix and major spending categories. The county's main revenue sources are property taxes (about $70 million, roughly 30% of total revenue), local income tax (about 21%), and charges for services and fees (about 21%). Murphy said the county expects about a 1% increase in property tax revenue for 2026 but cautioned that later years may be more constrained.

Budget staff emphasized that nearly half the county's budget (about 47%) is personnel and associated fringe costs. Abby (identified in the meeting as the presenter for the general fund deep dive) said, "our total estimated revenue for the general fund is 90,704,399," and showed that property taxes make up 56.5% of that general fund total and that public safety accounts for about 40% of general fund spending.

Council discussion and statutory context Several council members pressed budget staff on how the state's actions would affect local revenue. Council member Brian Rutten asked whether the one percent property tax increase estimate incorporated the state's $300 credit; Murphy and Dalton confirmed it does. Murphy said the county relied on projections from the state Legislative Services Agency and local analysis. Council members also clarified that the Department of Local Government Finance (DLGF) sets the tax rate after the county submits its levy and budget.

Public comment Members of the public used the hearing to press concerns about future cuts. Mike McManus, of South Bend, thanked county staff for limiting damage in 2026 but warned that "in 2027 and 2028 ... it's gonna be a very, very grim picture." Other speakers urged careful monitoring of service impacts if revenue declines continue.

Related budget items and council actions - Solid waste district and Southern International Airport budgets were presented for public hearing (bills 70‑25 and 71‑25); petitioners Benjamin Carson (Solid Waste Management District) and Renata Matusheva (Southern International Airport) reported no requested changes and said revenues support the airport budget; the council opened and closed the public hearings with no public testimony at the meeting. - The council opened a public hearing on the countywide appropriations and tax rates (bill 73‑25) and closed the hearing after public comment; that bill remained at the council for subsequent action per the normal process. - The council adopted Liberty Township's 2026 budget (bill 72‑25). The motion to pass was made and the roll call recorded a 9‑0 passage. - The council approved personnel changes funded by non‑general funds: bill 68‑25 (a prosecutor request to add a deputy paid from pretrial diversion funds) and bill 69‑25 (probate court positions paid by Indiana Department of Corrections funds). Both passed on roll calls of 9‑0. Prosecutor Ken Cotter told the council the deputy salary ($24,452 pro rata for the remainder of the year, plus fringe) would be covered by pretrial diversion revenue and that the position would be restructured if funding changed.

What the record shows and what remains open Presenters noted a modest increase in overall revenue for 2026 but repeatedly cautioned that estimates rely on state projections and that 2027 and 2028 are likely to be more constrained, especially if supplemental distributions do not materialize. The council completed public hearings on the budget ordinances this evening and approved specific personnel appropriations funded by restricted or external sources; the main county appropriation ordinance will continue through the council's adoption process.

Looking ahead: the council will take further consideration of the budget ordinances at subsequent meetings and monitor revenues closely in light of state policy changes.