Kosciusko County Council advances 2026 budget, tables decision on probation officers' bonus after State Board of Accounts guidance

The Kosciusko County Council advanced its advertised 2026 budget toward final adoption on the condition that a separate decision on probation officers' compensation be delayed.

At an initial budget hearing, county staff presented the advertised figures, including a countywide estimated total tax rate of 0.2694 and a general fund advertised budget of $33,204,360. Becky, a county staff member responsible for budget preparation, told the council: "The advertised estimated total tax rate is 0.2694." She said the Department of Local Government Finance (DLGF) review and certified assessed values could reduce the final rates before October.

The meeting focused on whether to provide probation officers a 2% retention payment similar to raises authorized for other county employees. County staff reported receiving guidance from the State Board of Accounts that any stipend or bonus provided to probation officers would be considered part of their salary and could not subsequently be reduced if it raised their base pay. A judge attendee requested the contact name at the State Board of Accounts so the court’s general counsel could review the legal authority behind that guidance, saying, "we would like to know exactly who at the State Board of Accounts is saying that...so that we can contact the general counsel and they can speak with that individual directly." County staff agreed to provide the requested contact information.

After discussion about the difference between bookkeeping and legal interpretations and whether probation officers are "state-funded" employees for pay purposes, Council member DeLand moved to table the probation-only compensation decision while approving the remainder of the budget to proceed to final adoption in October; Rachel seconded the motion. The motion passed on the council’s voice vote.

Nut graf: The council approved the advertised budget figures and a slate of line-item adjustments but delayed a decision on whether to give probation officers a 2% retention bonus because of conflicting advice about whether such a payment would become a permanent base salary under state accounting rules.

Council members and staff emphasized the preliminary nature of the advertised rates. Becky told the council the advertised levies are intentionally high "so we don't get stuck" and that the DLGF will issue a 1782 notice with final, certified rates. Staff said local assessed value growth — discussed in the meeting as roughly a $1 billion increase year over year — will affect final tax-rate calculations.

Council members pressed for clarification about who issued the legal opinion and whether it reflected the Judicial Conference of Indiana’s minimum salary schedule for probation officers. County staff cited the Judicial Conference guidance that departments shall not reduce salaries of probation officers paid above the minimum schedule.

Ending: The council will receive the DLGF-certified assessed values and a 1782 notice before final adoption in October. The county agreed to supply judges with the State Board of Accounts contact and to take additional time to reconcile bookkeeping and legal interpretations about probation officers' compensation before making a final decision.