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Finance staff flags revenue uncertainty: DLGF three‑year growth appeal and circuit‑breaker estimates could shift 2026 budget
Summary
County finance staff told Boone County Council that a potential Department of Local Government Finance (DLGF) three‑year growth levy appeal could add roughly $1 million if approved, but DLGF guardrails and differing circuit‑breaker estimates mean the county should advertise conservatively until official figures arrive.
Boone County finance staff told the county council at a budget workshop that two revenue uncertainties — a possible DLGF three‑year growth levy appeal and discrepancies in recent circuit‑breaker estimates — could materially affect the 2026 budget.
Staff said the county is eligible to file a three‑year growth appeal with the Indiana Department of Local Government Finance (DLGF) but cautioned that DLGF guidance contains “guardrails” that may disqualify counties with strong cash reserves. If approved, staff estimated the three‑year appeal could yield an additional roughly $1 million or more, but the DLGF memo and its stipulations will determine eligibility. Staff forwarded the DLGF memo to council members and urged the council to decide quickly if it wants to pursue the appeal because the filing is due Oct. 19 and the intent must be advertised with the proposed budget in September.
Staff also briefed the council on differences between circuit‑breaker loss estimates from the Legislative Services Agency (LSA) and the DLGF. The county’s consultant, Baker Tilly, is building a local model to estimate parcel‑level circuit‑breaker losses and other reassessment impacts but said development of that model is slower than anticipated because the code is written offsite and requires testing. Baker Tilly reported it can provide aggregate checks and expects more live reporting in the coming 10 days as assessment data from counties becomes available.
Finance staff said that preliminary DLGF circuit‑breaker numbers were about $500,000 lower than earlier LSA‑based expectations; other counties report larger diverging figures. Staff recommended a conservative approach: advertise the budget with the council’s desired programs and use a contingency “escape hatch” to reduce appropriations later if official revenue estimates (local income tax disbursements, net assessed values, and the final DLGF circuit‑breaker calculations) come in lower.
Staff noted that certain funds — including some bridge and CCD (County Cumulative Bridge) funds — are project driven and that net assessed value and local income tax (LIT) estimates are not yet final; LIT estimates are required to be posted by statute on the 15th of the month. Council members asked staff to return with updated LIT and net assessed value numbers in subsequent meetings.
No final revenue decisions were taken at the workshop. Council members were told that advertising conservative but flexible budgets now will allow them to include salary and program goals and then scale back if required once state figures and Baker Tilly’s modeling are finalized.
