MAYOR BOB COURTNEY PRESENTS PROPOSED 2026 MADISON CITY BUDGET

Proposal does not include cuts to essential services.

Madison, Indiana (October 8, 2025) – On Tuesday, October 7, 2025, Mayor Bob Courtney presented the proposed 2026 City of Madison budget to the Madison City Council, outlining a $15.9 million plan (excluding utilities) that preserves essential city services, prioritizes public safety, and responds to new fiscal challenges created by Senate Enrolled Act (SEA) 1 and ongoing inflationary pressures.

“This budget reflects careful planning and difficult choices,” Mayor Courtney said. “We are making the necessary adjustments to absorb more than $800,000 in reductions caused by SEA 1, while also accounting for the rising costs of fuel, utilities, supplies, wages, insurance, and employee benefits. Even with these challenges, our number one goal remains public safety—with 46% of property and income tax dollars invested in protecting our community. We are also ensuring critical investments in quality of life and the long-term future of Madison.”

The proposed 2026 budget reflects virtually flat growth compared to 2025, driven by a reduced maximum levy under SEA 1 and increasing non-discretionary expenses. The City was able to offset the shortfall through operational efficiencies, use of alternative funding sources, and targeted reductions. Importantly, the proposal does not include cuts to essential services.

Key Adjustments in the 2026 Proposal Include:

• Pay raises for elected officials held flat.
• Pay raises for full-time city staff reduced to a flat $1,250 incentive (plus FICA/PERF).
• Elimination of the associate planner position in Planning, Preservation & Design.
• Elimination of the part-time Clerk Deputy position.
• One-year pause in city funding for new PACE program projects.
• Permanent reduction of six positions within the Madison Police Department.
• One-year reduction in Main Street infrastructure funding.
• Removal of Main Street match funding from Wheel Tax and Riverboat sources.
• Removal of $100,000 investment in tourism and the Main Street Program from the Food & Beverage Tax.
• Levy allocation to Parks reduced by 25% to cover other General Fund expenditures, offset by Food & Beverage Tax. Parks general utilities also offset with Food & Beverage Tax.
• Adoption of a $25/$40 Wheel Tax.
• Adoption of a 1% Food & Beverage Tax.

“Madison residents want a city government that makes smart financial choices while keeping vital services strong,” Mayor Courtney said. “This budget meets that responsibility while we work with state leaders on long-term solutions to the challenges from SEA 1."