Indianapolis 2027 Budget: Hogsett's $1.9B Plan Before the Oct. 19 Vote

The Indianapolis-Marion County 2027 budget is not adopted yet. Mayor Joe Hogsett introduced it on August 10, 2026. The City-County Council held its public hearing on October 5, and the final vote is scheduled for the full council meeting on Monday, October 19, 2026. No public hearing will be held at that meeting. Passage takes 13 of 25 votes, according to indy.gov's 2027 budget page and WISH-TV's hearing preview.

As introduced, the plan budgets $1,897,817,268 in expenditures against $1,897,860,637 in projected revenue. Mirror Indy puts the increase at about 11% over last year. That follows a 2026 spent absorbing SEA 1's first-year cuts. Figures below come from the city's 2027 Proposed Budget Book unless another source is cited.

What the Mayor proposed for 2027

The book calls this the tenth consecutive balanced budget, built "without raising taxes." The main items:

• Roads. The Department of Public Works budget reaches $267 million, up from $79 million in 2016.
• Public safety. The budget funds 1,743 police officers, 1,276 firefighters (including a January 2027 recruit class), and 15 new 911 telecommunicators. On September 30, a council committee voted 11-1 to advance the IMPD budget, which includes an 11.5% funding increase (WISH-TV).
• Personnel. The budget assumes 95% of positions are filled, which is a lower turnover expectation than before.
• Debt. A $27.5 million general obligation bond would replace IMPD's North District headquarters and renovate the West Street Public Works facility. It is sized to keep debt service levies flat.
• Reserves. No reserves are drawn down. Budgeted funds are projected to end 2027 with more than $402 million in fund balance.

A separate $19 million fiscal ordinance adds one-time spending, including $10 million for public works and the state road match.

How SEA 1 shaped the property tax side

SEA 1 (2025) is in its second year for taxes payable in 2027. The budget book names three changes that move the Marion County tax base:

• The business personal property exemption rises from $80,000 to $2,000,000 (our explainer).
• The homestead standard deduction falls to $40,000 under IC 6-1.1-12-37.
• The supplemental homestead deduction rises from 40% to 46%.

The book concludes "these changes shift the tax burden from residential to commercial and industrial properties." For 2026-pay-2027, gross assessed value is up 7.6% but net assessed value is up only 3.2%.

Despite SEA 1, property tax revenue still grows. The state's maximum levy growth quotient (IC 6-1.1-18.5-2) is 6% for 2027, up from the 4% cap that applied for 2024 through 2026. Projected property tax revenue is $529 million, up $47 million from the $482 million budgeted for 2026. OFM credits the gain to "the sunsetting of several major Tax Increment Financing areas," which returns that assessed value to the general tax base (our TIF expiration coverage), and to changes in assessment methodology.

Circuit breaker losses shrink to $54.5 million

The circuit breaker is the property tax cap under IC 6-1.1-20.6: 1% of gross assessed value for homesteads, 2% for other residential and agricultural land, and 3% for commercial and industrial property. The levy table in the book shows the city and county together certifying $582,272,231 in levies, then losing $54,511,830 to circuit breakers. That leaves a net levy of $527,760,401.

In the book's chart, circuit breaker losses were $60 million in 2023, $61 million in 2024, and $76 million in 2025. They are estimated at $67 million for 2026 and $55 million for 2027 as introduced. The largest loss is in the County General Fund ($21.1 million). Amounts are not final until spring bills are generated. Why Indianapolis is so cap-exposed explains the parcel-level mechanics.

Local income tax: same 2.02% rate, different allocation

Marion County's total local income tax rate stays at 2.02% in every year shown, 2023 through 2027. Instead of a rate increase, an ordinance filed with the budget reallocates the 2.02%. Certified shares would rise to 1.1003% and public safety to 0.5512%, while the levy freeze rate drops to 0.1185%. With that shift, the city-county income tax distribution is forecast at $554.4 million, which OFM describes as an increase of $40.7 million.

The shift tracks state law. SEA 1 repealed the levy freeze rate (IC 6-3.6-11-1), and HEA 1210 (2026) pushed that repeal and SEA 1's new income tax structure back to January 1, 2029 (the budget book still lists the older 2028 date for the repeal). The certified countywide distribution is $705,353,536, about 7% above 2026 (Marion LIT distribution sheet). For the broader policy fight, see our replacement LIT coverage.

Income tax also covers most of the road match. The state's HEA 1461 (2025) money requires $50 million in new local funding in 2027, rising to $100 million by 2031. The 2027 match is assembled from four sources:

What to do before October 19

1. Read the documents yourself. The proposed budget book, budget ordinance, and police, fire, and solid waste special service district ordinances are posted on indy.gov's budget page.
2. Check the advertised levies. Every unit's Notice to Taxpayers is filed on Gateway. Our Budget Form 3 guide explains how to read one, and the fall budget hearing guide covers the objection process.
3. Contact your councilor. October 5 was the last formal public hearing.
4. Watch for the budget order. The council's vote is not the final word. DLGF must issue the Marion County budget order by December 31. See last year's budget order and certified rates.
5. Pay the fall installment on time. It is due November 10, 2026 (details).

The city's levy decides how much is raised in total. Your assessment decides your share of it. Check your parcel in Property Lookup, and if the value looks high, start building a 2027 appeal.