Central Indiana Mayors Adjust Budgets
INDIANAPOLIS — With property tax revenue expected to drop, central Indiana mayors say they’re working to protect city jobs while adjusting their budgets.
Beech Grove Mayor James Coffman told WISH-TV his city could lose about $500,000 next year due to changes in the state’s property tax law. That’s out of a roughly $20 million budget. Coffman said he’d rather cut spending on equipment and infrastructure than reduce staff.
“We don’t know exactly what’s coming, and that’s the hard part,” Coffman said. “We’re trying to stay realistic but hopeful.”
Anderson Mayor Thomas Broderick Jr. said his city is also watching the numbers closely. He told WISH-TV that while Anderson’s budget is larger, any unexpected shortfall could affect road repairs, public safety upgrades, or other planned improvements.
“We’re not looking at layoffs right now,” Broderick said. “But we are reviewing every department to see where we can tighten up.”
Carmel Mayor Sue Finkam said her team is still analyzing the impact but expects the new law to affect long-term planning. She told WISH-TV the city will likely delay some capital projects and reassess future hiring.
“We’re focused on maintaining services and protecting jobs,” Finkam said. “It’s going to take careful budgeting and some tough decisions.”
The law, passed this spring, gives homeowners a property tax credit of up to 10%, capped at $300. Additional credits are available for disabled veterans and low-income seniors. Over time, it phases out the homestead standard deduction and replaces it with a new formula based on assessed value.
To help cities offset the loss, the law allows them to adopt a local income tax of up to 1.2% starting in 2028.
