Some budget cuts are likely as the Indianapolis city-county government is expected to lose millions in property tax revenues starting in 2026 due to SB 1.

While public safety agencies will continue to grow, most city departments are being asked to trim their costs for 2026.

The city will set up a new fund to collect tax revenue that could lead to $100 million more being spent on roads by 2027.

Indianapolis officials are asking department heads — except those who lead public safety agencies — to reduce their annual budgets by about 4% heading into 2026 as the city adjusts to higher labor costs, lower property tax revenue forecasts due to Senate Bill 1 and other state policy changes.

Without those proposed cuts, city leaders would be staring down a roughly $43 million budget deficit

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