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Scottsburg staff warn Senate Bill 1 will shrink tax revenue; urge pause on 2026 special projects
Summary
City staff told the Scottsburg City Council at a budget workshop that state Senate Bill 1 and related property-tax changes will reduce local revenue over the next decade, projecting an immediate shortfall and recommending suspension of one-time special projects in the 2026 budget while staff identify cuts and hold spending on unfilled positions.
Scottsburg city staff told the City Council at a workshop on Oct. 5, 2025, that state changes tied to Senate Bill 1 and property-tax “circuit breaker” credits will reduce the city’s tax receipts and that the city should pause special projects in the 2026 budget while staff identify cuts.
The warning came from Tish Richard, a city staff member who presented Baker Tilly financial projections prepared for the city, and from Jan, a city staff member who worked with the consultant. They said the projections extend to 2031 and show gradually larger city revenue losses tied to property-tax credits and other state-level changes.
City staff said the four municipal accounts that receive property-tax dollars —…
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