Bloomington mayor Kerry Thomson on Friday released the city's 2026 budget proposal for allocating $147 million.
The city cited the impact of Senate Enrolled Act 1, voted into law earlier this year. It lowered property taxes in Indiana, reducing revenue used by municipalities. It also limits bonding for capital projects such as the Monroe County Jail.
A news release announcing the budget proposal says the law requires the city "to reassess which services it delivers, how those services are funded, and what has the greatest impact."
Thomson is quoted in the release as saying, "SEA 1 has changed the landscape for how cities like ours are funded. Even as the financial rules change, our commitments do not. We remain focused on co-creating with our community, leading with transparency and accountability, and building a city that not only works but also sparks joy. This budget reflects that north star.”
The city had a $16 million operating deficit when Thomson took office last year, the release said. The proposed budget has a general fund deficit of $11.1 million. The general fund is for daily operations as opposed to funds legally restricted for specific purposes.
The proposed budget begins to implement "priorities-based budgeting," or PBB.
The administration will make budget presentations to the City Council on Aug. 18, Aug. 20, Aug. 25 and Aug. 27.
The presentations are open to the public and will be livestreamed.