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Delaware County staff outline $7.4 million shortfall as property-tax math remains uncertain
Summary
County staff told the council the 2026 budget as presented would require roughly $7.4 million in cuts; officials said state-calculated property tax figures are running lower than the 4% growth many expected, complicating planning.
Delaware County officials told the County Council during the budget hearing that the county faces a roughly $7.4 million shortfall for the coming budget year and will need to find alternative revenues or cuts to close the gap.
County staff said revenue this year is down roughly $1 million compared with last year and that the 2026 general budget request totals about $46.5 million. Officials told the council the county had projected a small increase in the property tax levy — about $250,000 in dollars — rather than the 4% growth rate that had been discussed at the state level.
The discrepancy reflects state-level timing and calculation issues, staff said, including late TIF (tax increment financing) neutralizations and property tax “circuit breaker” adjustments. County staff and a consulting firm, Baker Tilly, told the council that the Indiana Department of Local Government Finance (DLGF) is using conservative gateway estimates this year and actual values could change when final figures arrive later in the fall.
Council members and staff discussed short-term steps to reduce spending. One option discussed during the hearing was freezing salaries at 2025 levels; staff estimated that a freeze implemented countywide would reduce payroll expense by about $728,000 (plus associated reductions in payroll taxes and retirement contributions). Staff cautioned that this would not reach the full $7.4 million target and that deeper or additional measures would be necessary.
Multiple speakers also warned that changes enacted by the state — including provisions tied to Senate Bill 1 that will alter local income tax arrangements — are expected to reduce county revenues in coming years, increasing budgetary pressure in 2027 and 2028.
Rick Yanceer, a public commenter who identified himself as a newsman and author, told the council he opposed any local tax increases: “We don't wanna see any tax increase,” he said during the public-comment portion of the hearing.
Council members directed staff to continue working through department budgets, to return salaries to 2025 levels for initial review, and to track items that would need formal appropriation if final revenue numbers change. Staff said they expected many of the state gateway numbers to settle later in the calendar year, probably around September, but that final figures can still vary.
