Alex Dalton

Michigan City's proposed 2026 budget includes a 2% raise for most city employees, fulfilling a promise made earlier this year by Mayor Angie Nelson Deuitch.

The city went without permanent raises in its 2025 budget, instead distributing one-time bonuses from the city's rainy day fund.

Next year's $69 million draft budget represents a roughly $1.9 million increase in overall spending over this year's budget, driven in part by a steep increase in employee health care costs.

The proposal introduces pay ranges for city roles where employees have previously received identical pay, allowing Michigan City to reward more experienced hires and longer-serving veterans of its departments. The city also plans to convert some roles from full-time to part-time as a cost-cutting measure.

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