Mayor Presents 2026 $1.7 Billion Budget Proposal, Cites $43.3M Shortfall After State Changes

Mayor Joseph H. Hogshead on Aug. 11 presented the administration's proposed 2026 City-County budget, highlighting a decade-long record of balanced budgets and warning that recent state actions created a $43,300,000 shortfall that the city must close without raising local taxes.

The proposal, which City Controller Abigail (Abby) Hanson later detailed, crosses the $1.7 billion threshold in combined revenues and expenses and aims to preserve investments in public safety, infrastructure, affordable housing and parks while protecting reserve levels. "Since 2016, we together have passed a total of 8 consecutive fully funded and fully balanced budgets, all without a tax increase at all," Mayor Hogshead told the council.

Why it matters: Administration officials said state legislation and changes to shared revenue streams reduced projected receipts and forced difficult budget choices. Controller Hanson said Senate Bill 1 and other state actions trimmed the city's revenue trajectory and contributed to a cumulative projected reduction in the tens of millions over the coming years.

Major allocations and priorities

- Public safety: The proposal funds full implementation of recently negotiated union contracts for the Indianapolis Metropolitan Police Department (IMPD), Indianapolis Fire Department (IFD) and the Marion County Sheriff's Office; it also includes pay increases, bonuses and promotion paths intended to improve recruitment and retention. The mayor reported the administration has hired "more…