Hammond mayor says Indiana's SB 1 is 'crimping' city budget, could force cuts to services and traditions

Mayor Thomas M. McDermott Jr. told attendees at Hammond City’s annual Volunteer Awards breakfast that the passage of Indiana’s Senate Bill 1 is “crimping” the city’s ability to pay employees and could force cuts to municipal services and long-standing community traditions.

Speaking to volunteers and community partners, the mayor said the city is reviewing budgets and may need to reduce or eliminate programs and events that have run for decades, citing the volunteer breakfast — which he said costs the city more than $20,000 to stage — as one example of a tradition under financial strain. “It's insane what's going on in government right now,” McDermott said.

The mayor described SB 1 as legislation passed by the Indiana General Assembly and linked to the state administration he identified by name, and said the law shifts pressure onto local budgets. He warned that the effect could extend to local public safety and schools, asking the audience whether they “like the police department staffing at the level it is? Do we like the fire department staffing at the level it is? Do you like your local teachers?” and adding that some positions could be at risk.

Scott Miller, Hammond’s chief of staff, introduced the event and described the breakfast as an opportunity to thank volunteers who “give their time and their heart to make Hammond a better place.” The ceremony continued with awards honoring 12 recipients and remarks from community leaders, but McDermott used his remarks to press the budget implications of the state law.

McDermott characterized SB 1 as creating a short-term property tax reduction for some homeowners followed by a new or increased local income-tax burden, saying the net effect for some residents would be a small property tax cut offset by other levies. He did not provide legislative text or specific fiscal estimates at the breakfast.

The mayor framed the issue as more than ceremonial: he said the law reduces local choices about staffing and programming and forces city officials to consider whether longstanding civic practices remain affordable. He urged residents who prefer the current level of local services to engage politically, saying the city’s decisions about employees and programs are being constrained by state policy.

The Volunteer Awards breakfast is a long-running Hammond tradition honoring volunteers across schools, faith communities and nonprofit organizations. The program recognized 12 recipients at the event, including individuals and groups who volunteer with Meals on Wheels, Saint Joseph’s soup kitchen and the Hammond Fire Department’s literacy outreach.

McDermott’s remarks were delivered during the awards program and framed the policy concern as a threat to services and community programming; he did not announce any formal budget actions at the event.