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Fishers health officials warn of $1.3 million projected deficit after state HFI funding cut
Summary
Fishers Public Health staff told the board that a sharp reduction in Help First Indiana funding will reduce anticipated revenue in 2026 and create an approximate $1.3 million gap unless offset by other sources or spending changes.
Fishers Public Health staff told the Fishers City Public Health Board on April 24 that a large reduction in state Help First Indiana (HFI) funds is projected to reduce revenues and create a shortfall in the department's future budget.
"For 2026, our revenue will be decreased to $2,400,000 and we will still have expenses around $3.7 million," Laura Grama, health department staff, told the board. "So we are projecting a deficit of about $1.3 million."
Grama and Laura's colleagues said the department received a little more than $3.7 million in HFI funding in the current year and that the governor's budget, as discussed with staff, represents roughly a 73% reduction in new HFI money compared with the prior funding cycle. Staff said the department is evaluating multiple responses including moving into a city community center (which will cut rent and utility costs), billing and clinical revenue changes, and other revenue-capture steps.
"I think our commitment to this board is that we will be back before you at the next meeting with a real concrete plan on how to address this," said a board member during the discussion. Staff asked for 30 to 60 days to re-scrub revenue assumptions, firm up forecasts and present recommended options to the board.
Board members pressed staff on whether statutory requirements or new mandates accompany the reduction in state funding. Staff said they had not received clear guidance from the state and were still reviewing whether any new administrative directives (from the Indiana Department of Health or the governor's office) would require changes to mandated services.
Staff added they have contingency work underway: recapturing clinic revenue, expanding billable clinical services and reducing facility costs by relocating to the community center in October. The board did not adopt formal budget cuts at this meeting; staff will return with options for program priorities and possible reductions.
The department also flagged uncertainty about how the state consolidated or reapportioned prior federal COVID-era funds into general grants, which complicates projections for program continuity and grant-eligible spending.
