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Deputy controller says city can fund AFSCME Local 962 contract, presents $300,000 2026 estimate
Summary
The Rules and Public Policy Committee reviewed a fiscal-impact statement April 21 for a three-year collective bargaining agreement with AFSCME Local 962; Deputy Controller Jake McVay told the committee the 2026 cost is roughly $300,000 and can be covered largely by supplemental local income tax distribution.
The Indianapolis City Rules and Public Policy Committee on April 21 reviewed a fiscal-impact statement for a three-year collective bargaining agreement between the City of Indianapolis/Marion County and AFSCME Local 962.
Deputy Controller Jake McVay told the committee the contract would be effective Jan. 1, 2026, and include base-wage increases of 4% in 2026 and 3% in both 2027 and 2028, plus certification and education pay. "Beginning in 2026, employees will receive an annual increase to base wages of 4% followed by 3% in 2027 and 2028," McVay said.
The presentation said the negotiated wages are retroactive to Jan. 1, 2026, and that longevity, certification pay (up to $4 an hour), and education-based supplements ($300 for an associate's, $500 for a bachelor's and $700 for a master's) are included. McVay said the 2026 budget already includes a 2.6% cost-of-living adjustment that partially funds the contract and that the remainder would be paid from the supplemental local income tax distribution. "The fiscal impact estimate for 2026 is about $300,000," he said, adding that "the COLA amounts to about $30,000" and the base-salary estimate is about $60,000.
Councilor Andy Nielsen asked for clarification on the gap between the COLA and the total cost. McVay said certification pay drives much of the additional estimate — he noted an illustrative $171,000 portion attributable to certification pay under conservative assumptions — and gave an estimated range for supplemental funding coverage. "We're assuming that every employee in our estimate is qualified up to that additional $4 an hour. That does not reflect reality," McVay said, explaining the estimate errs on a high side.
The committee was informed it did not need to vote on the fiscal-impact report; members accepted the report. McVay said he was confident the city could include the contract costs within 2027–2028 budgets if the council formally approves the agreement when it is presented for action.
The committee’s acceptance concludes the review required under municipal code section 2-91-610 for presenting fiscal impacts of new union agreements. A formal council vote on the collective bargaining agreement would be the next step for approval and implementation.
