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Council president warns SB1 will sharply limit local revenue growth; council braces for tighter 2026 budget
Summary
Evansville-area council leadership told members that state legislation known as SB1 will sharply constrain the county's allowable revenue increase for 2026, forcing the council to consider deferring or rejecting some staffing and spending requests.
President Schettler told the council that a recent meeting with a state representative, the county auditor and the county treasurer made clear the impact of the state's SB1 changes on local revenue. He said the roughly estimated allowable revenue growth under the new rules would be "in the $7.63 range" (about $765,000), and that existing contract escalations and obligations leave the county with several million dollars of likely unfunded obligations if no changes are made.
The warning came at the start of the council's meeting, where Schettler said contractual escalations for labor, IT and county service contracts together would leave roughly $4.25 million in obligations that would not be covered by the constrained tax revenues. "It's not a whole lot of money," Schettler said of the allowable increase, adding that the county must prepare for a difficult budget year and that many previously routine approvals may need to be rethought.
Why it matters: Council members said the revenue limit changes from SB1 could force the county to defer personnel and other spending decisions during the 2026 budget cycle. Members repeatedly urged caution when considering new hires, salary changes or multi-year lease commitments.
At the meeting several agenda items were explicitly delayed or tabled in response to this uncertainty, including personnel requests, court reclassifications and a request from the sheriff to raise the starting annual salary for probationary deputies.
President Schettler and other council members urged staff and department heads to return with additional details on grant dependencies, lease escape clauses and the county's long-term obligations before the council approves further new recurring costs.
Ending: Council members agreed to continue routine oversight while deferring decisions that would commit the county to new ongoing costs until they have clearer state guidance and the next budget cycle.
