BLOOMINGTON Cities across Indiana are figuring out their possible budgets for 2026. Bloomington is dealing with a smaller budget than in 2025, and city leaders say the new property tax cap law is the reason why.

"It's been difficult," said Bloomington city controller Jessica McLellan, who is in charge of the city's budget. "It's been a challenging year so far to try to get ready for a lot of unknowns."

Bloomington's proposed 2026 budget is now ready for the public to read. It projects the city's general fund income will decrease from $58 million this year to $54 million next year.

"It's not easy to cut things, and it's not easy to tell people you need to make hard choices," McLellan said.

Bloomington's total proposed 2026 budget is $147 million of expenses against $120 million of reven

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