News Story

The Indianapolis city budget is growing, despite state property tax cuts that were expected to have a greater impact on local governments.

The big picture: Mayor Joe Hogsett introduced a nearly $1.9 billion 2027 spending plan Monday.

• Public safety initiatives and criminal justice services make up more than half the city’s expenses.
• Much of the growth from last year’s $1.7 billion budget is the $100 million increase in road funding secured through a state matching grant.

What they’re saying: “Every detail of this budget matters,” Hogsett said at Monday’s City-County Council meeting. “Every cent represents a commitment to the people of Indianapolis.”

State of play: While the city did see more revenue growth than expected, Hogsett said last year’s property tax overhaul continues to present challenges.

• Senate Enrolled Act 1 gives a credit to most homeowners, saving Hoosiers money while costing local governments.
• Those losses are expected to increase over the next two years.

Friction point: Hogsett says he remains committed to meeting budget challenges without raising taxes.

• The spending proposals introduced Monday night include money to meet the $50 million matching grant offered by the state to repair Indy’s crumbling roads.
• Hogsett vetoed a council plan that would have increased the county’s wheel tax to meet the match.
• Instead, his budget would use a combination of income tax and stormwater dollars, plus supplemental income tax payments from the state.

The other side: Democrats on the council who supported the wheel tax increase have questioned whether Hogsett’s plan is sustainable enough to meet the match as it grows, up to $100 million by 2031.

• While the caucus said last week it didn’t have the votes to overturn the veto, they flipped enough to do so last night.

• Councilor Brienne Delaney, who originally voted no, said she had hoped for a compromise to emerge but voted to override the veto Monday because roads were the top concern she heard about from constituents.

• Councilor Frank Mascari also changed his vote. Councilor Dan Boots was absent during the original vote but voted to override the veto Monday.

Zoom in: If adopted, it would be the city’s 10th straight balanced budget.

• It includes a cost-of-living increase for most city employees and begins funding a new policy that gives pay increases annually to reward employees who stay with the city.
• The spending plan supports the low-barrier shelter and housing hub, which is expected to open next year, includes funding for a new IMPD north district headquarters and expands homelessness programs like Vacant to Vibrant and master leasing.

What’s next: More detailed departmental spending plans will be presented at council committees over the next six weeks, during which amendments could be suggested.

• A final vote from the council is expected in October.