Indianapolis Mayor Joe Hogsett’s administration has proposed a $1.7 billion budget for 2026 that holds the line on taxes but includes roughly $5 million in fee increases in the city’s business services division.
The spending plan maintains a balanced budget while boosting funding for public safety, infrastructure, housing, and quality-of-life initiatives. City officials said the proposal protects existing labor contracts, prepares for new road funding in 2027, and safeguards key investments despite pressures from reduced state and federal funding.
The city projects ending 2026 with $156 million in reserves — about 9.2% of the total budget — a level the administration says supports Indianapolis’s strong credit ratings and financial stability.
Highlights include three new IMPD recruit classes, expanded anti-violence and mental health programs, $10 million in road work to position the city for $50 million in new state transportation dollars in 2027, $57.7 million in parks improvements, and $10 million for homelessness initiatives.
The budget will now go before the City-County Council for debate and potential amendments before final adoption later this year.
