Beech Grove Faces Budget Challenge Due to New State Law

BEECH GROVE, Ind. — The city of Beech Grove is embarking on a critical budget season as it prepares to navigate a new financial landscape shaped by both local decisions and state legislation.

The city’s Common Council is set to begin its 2026 budget discussions on Tuesday, September 2. The upcoming budget planning follows a recent vote by the council to increase flat-rate sewer and stormwater fees, a move that was necessary to prevent a $1.7 million shortfall for the city-owned utility.

The city’s financial outlook is further complicated by Indiana’s new Senate Bill 1, which aims to provide savings to homeowners but is expected to reduce property tax revenue for local governments.

A financial advisor has warned that the legislation, combined with other tax changes, could leave small cities like Beech Grove with a significant revenue gap. To mitigate the potential impact, the city has been advised to retain as much cash as possible.

The Common Council is expected to vote on the final 2026 budget this fall. The public is invited to attend the first budget workshop on Tuesday, Sept. 2, at 7 p.m. in the Council Chambers of Beech Grove City Hall. The meeting will also be available for livestreaming.