Mayor Joe Hogsett introduces $1.7 billion 2026 budget
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Mayor Joe Hogsett's $1.7 billion 2026 budget proposal makes investments in public safety and roads, but has little room for other new spending.
The big picture: It's larger than the $1.65 billion 2025 budget, but growth is slower than it would have been without legislative changes that cut local property tax revenue by more than $10 million next year.
- The changes also mean that income taxes have surpassed property taxes for the first time as the largest source of revenue for the city.
What they're saying: "We inevitably had to make some difficult decisions this year," Hogsett told the City County Council on Monday night. "We had to ask our agencies to do more with less. But thanks to our strong fiscal discipline over the past 10 years, the city of Indianapolis will not falter."
- "This year's budget reflects the need for operational efficiency while still protecting key investments in our city and its people."
State of play: The city was facing a $43 million hole when it began the budget-writing process.
- Hogsett's proposal closes that with a combination of small cuts to most department budgets and by increasing fees for the Department of Business and Neighborhood Services, which handles licensing, permitting and inspections for the city.
- The city negotiated new labor contracts last year and was constrained by those agreements, which needed to be fully funded by this budget.
Between the lines: The investment in public safety includes funding for more than 1,700 officers — a staffing level the city hasn't hit for several years.
- IMPD Chief Chris Bailey said the funding is still needed, though, to cover the cost of officer overtime that makes up the difference in how many officers are needed and what the city actually has.
The other side: Councilor Carlos Perkins questioned that investment.
- "Public safety is beyond just a badge," he told reporters Monday night. "We're not just funding IMPD. We must ensure that our budget reflects prevention."
Here are some other highlights from Hogett's proposed budget:
- $10 million for strip patching roads.
- $10 million for homelessness initiatives, like the rapid rehousing Streets to Home program.
- $8 million to update tornado sirens and emergency communication, something many communities are reexamining after storms in Texas caused deadly flash flooding.
- $400,000 for the Circle City Readers tutoring program.
What's next: A public hearing on the budget will be held Sept. 22 and the council will take its final vote Oct. 6.