In its first budget session since the state legislature passed Senate Enrolled Act 1, Lake County will maintain its 2025 budget levels as it plans the 2026 budget, said Lake County Council finance director Scott Schmal.
The Lake County Council will have to be “a little more mindful and thoughtful” as it creates the 2026 budget, Schmal said during the council’s budget workshop Thursday.
While the county’s growth quotient was 4%, which means the county can increase its property tax levy by 4%, about 80% of that growth quotient “is carved out” toward homestead credits, which is a new component of the Senate Enrolled Act, Schmal said.
That leaves about $1 million for the county to utilize, Schmal said, but most of that has been committed to cover contracts or state-mandated funds.
“Any increases in budget would need an offset somewhere,” Schmal said.
Senate Enrolled Act 1 was a property tax bill that will save two-thirds of taxpayers up to $300 on their 2026 property tax bill, while local governments will lose $1.4 billion through 2028. Gov. Mike Braun signed the bill into law April 15 and called it a “historic” plan to reduce property taxes for most Hoosier homeowners while limiting future tax hikes and making the tax system fairer and more transparent.
The county will feel the fiscal impact of Senate Bill 1 in the 2028 budget year, Councilman Randy Niemeyer said, as the county is projected to lose $30 million by 2028 and $50 million by 2030.
Niemeyer said the proposed 2026 budget shows revenues and expenses in the approximately $199 million range, but is off by approximately $500,000. As the council workshops the budget, the revenues and expenses will balance out, he said.
But departments have requested a total of $3.1 million more in revenue for the proposed 2026 budget compared to the 2025 budget, Niemeyer said.
“We never approve a budget in the red; the revenue and expenses will match,” Niemeyer said.
The 2026 budget does not include across-the-board raises for employees, Niemeyer said, but department heads could reorganize or reduce their budgets to allocate raises for their employees.
Niemeyer, R-7th, said under Senate Enrolled Act 1, local governments will be looking to other sources of funding as property taxes “don’t grow.”
Local governments have four main funding sources: income tax, property tax, fees and grants, Niemeyer said.
“We have to figure out how to fit everything we need to do into those sources,” Niemeyer said. “We need to look, where do we have duplications, where can we eliminate some of those contracts, where can we put things on employees.”
Council President Christine Cid, D-5th, said she appreciated that many department heads didn’t ask for budget increases as the council prepares for the impacts of Senate Enrolled Act 1.
“The last thing we want to do is reduce public service. We just have to be more efficient,” Cid said.
Councilman Ted Bilski, D-6th, proposed a motion to eliminate positions, excluding any vacant mandated positions, that have been vacant since January 2024. The motion passed 6-0 with Councilman Ronald Brewer Sr. absent.
Niemeyer said eliminating vacant positions will save the county approximately $1 million.
The next budget meeting will be held Sept. 16.
akukulka@post-trib.com
