2026 City Budget

Budget Adopted

On October 21, 2025, the Common Council of the City of Madison has unanimously (5-0) adopted the City's 2026 budget totaling $15.9 million (excluding utilities), subject to DLGF approval. The plan preserves essential city services, prioritizes public safety, housing, and quality of life initiatives, while addressing new fiscal challenges created by Senate Enrolled Act (SEA) 1 and ongoing inflationary pressures.
When combined with the City's utility services, the total cost of operating the City next year approaches $26 million. The 2026 budget leverages tax dollars, grants, reserves, Tax Increment Financing (TIF) funds, charitable contributions, private investment, and user fees to balance investments across the community.
"The 2026 budget builds on our shared progress and represents a continued commitment to investing in safe neighborhoods, strong infrastructure, and a quality of life that continues to make our City one of Indiana's best places to live, work, and visit," said Mayor Bob Courtney. "Despite the new financial constraints created by SEA 1 and inflation, we remain committed to delivering essential services and advancing the strategic priorities that keep Madison moving forward."
Key priorities for 2026 include:
  • Main Street Infrastructure Project: Continued investment in the multi-year reconstruction and pedestrian safety improvements along Main Street, modernizing a key corridor through the historic district.
  • Park Improvements: Completion of the full Welch Park redesign, adding amenities for all ages, and beginning improvements at the Brown Gym, Rucker Sports Complex, and Sunrise Golf Course to better serve Madison's growing community.
  • Blight Elimination & Neighborhood Revitalization: Continued efforts to eliminate vacant and abandoned structures, leveraging TIF dollars to fund the PACE Grant Program to help property owners reinvest in their homes and neighborhoods.
  • Infrastructure & Connectivity: Completion of the West End Gateway and Connector Trail, expanding walkability and connectivity; continued investments in the Madison Railroad, including the transload facility to attract new businesses, and at the Madison Regional Airport, including runway expansion and new hangar development; a continued additional commitment of $1 million annually for local road and sidewalk improvements.
  • Housing Initiatives: Ongoing investment in housing development both downtown and on the hilltop, supporting a balanced and sustainable housing market. 
  • Public Safety: Investment in new equipment, updated technology, and enhanced training for first responders.
  • Community Support: Continued investment in programs and partnerships that support veterans, at-risk youth, active adults and seniors, and participants in the Jefferson County JCAP program, along with increased funding to the Jefferson County Animal Shelter.

2026 Budget Hearing for the Public

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."

View the presentation here.