EVANSVILLE — Evansville Mayor Stephanie Terry presented the proposed 2026 budget Tuesday, with the impact of state-level decisions visible throughout.

Terry said the city expects a shortfall of about $4.1 million in the general fund for 2026 due to the passage of Senate Enrolled Act 1. SEA1 lowers property taxes through a $300 bill credit, with the biggest cuts handed to the wealthy and those paying the highest amount in taxes. That money would have previously gone to cities and counties.

Over the next three years, the city expects to lose about $15 million in property tax revenue. There was no request to raise the local income tax, a measure offered as an avenue to recover lost property tax dollars from the state.

“While tax relief is welcome news for many families, this particular l

See Full Page