Monroe County Adopts $131M Budget After Most Difficult Decisions Since COVID-19
On October 14, 2025, the Monroe County Council voted to adopt a $131 million budget for 2026, marking the end of the most difficult budget process the county has faced since the COVID-19 pandemic. This budget represents a commitment to maintaining services and supporting over 750 county employees through a period of extraordinary fiscal pressure that required collaboration and difficult choices.
A Year of Extraordinary Challenges
The path to this budget was shaped by a series of significant financial pressures that required the council to make difficult decisions while preserving essential services and employment.
The challenges began
in January 2025, when actions by the Department of Government Efficiency led to increased regional unemployment and substantial reductions in federal grants awarded to Monroe County.
In February, the county discovered a $3.8 million revenue shortfall due to local errors.
These combined pressures created an initial $8 million shortfall in Monroe County’s budget. From May through August, council members met with department heads and elected officials to review budgets line by line. From August to October 14, the Monroe County Council met weekly in an intensive process. Using public comment and collaboration, we reduced the budget growth rate from 10% to 5% compared to the previous year through spending cuts, policy changes, including a hiring freeze and new overtime regulations, and strategic use of previously untapped revenue sources.
Three Core Commitments
The budget process was guided by three fundamental principles that shaped the final outcome:
Maintaining Integrity: The council delivered on its promise of a 3% cost-of-living adjustment for all county employees and elected officials. Healthcare coverage remains comprehensive, with $11.3 million allocated for employee medical expenses in 2026. The commitment to preserve personnel positions was also kept, recognizing that employment security provides freedom and stability for county workers and their families.
Demonstrating Resilience: The county adhered to local government finance best practices by maintaining a robust Rainy Day fund for emergencies and ensuring fund balances meet minimum requirements for payroll obligations. The budget achieves positive balances in levy funds, demonstrating that revenues exceed expenditures and establishing a foundation for fiscal stability.
Budgeting Values: The approved spending reflects the community's priorities, including robust wages and compensation for employees, climate resilience initiatives, and pretrial services that support restorative justice and mercy.
Financial Results
You can find all data in the Certified Budget, Levy, Rate Report at https://gateway.ifionline.org/report_builder/.
The adopted budget is $131 million, and is comprised of the certified Department of Local Government Finance (DLGF) funds and the Home Rule Funds, as shown in Monroe County Ordinance 2025-36.
The 2026 DLGF reviewed funds total $112,974,815 including the County’s largest fund: the General Fund. Those funds also include Rainy Day, Health, Elections, Airport, bridges, and more.
The 2026 Home Rule funds total $17,977,770 includes funds like Public Safety Answering Point (PSAP) interlocal, local public health services, stormwater management, and more.
The financial results of this adopted budget is that unlike some other Indiana counties facing similar fiscal pressures, Monroe County preserved all personnel positions and did not implement reductions in force.
The Process and the Path Forward
While some observers criticized the budget process, council members characterized it differently—as an exercise in humility, collaboration, and honest acknowledgment of challenges. The process involved robust public input through comments, emails, phone calls, and text messages, with all seven council members contributing meaningfully to addressing the fiscal shortfall.
Council members acknowledged that more difficult decisions likely lie ahead. Specifically, as state legislation takes full effect and the local income tax system undergoes restructuring over the next two years, the county will be challenged to address potential funding shortfalls, evaluate service priorities, and ensure continued support for employees.
The October 28 meeting agenda will include the postponed health department and bond decisions, as well as an expected appropriation request for the North Park real estate transaction, the planned location of the county's new jail and justice complex.
A Foundation for the Future
The 2026 budget represents more than numbers on a page—it reflects a $131 million commitment to county employees, fiscal responsibility, and community values during the most challenging budget cycle since the COVID-19 pandemic. The process established a framework for honest dialogue and collaborative problem-solving that will be essential as Monroe County navigates continued challenges in the years ahead.
The 2026 budget keeps promises made to employees, maintains essential services for residents, and positions the county to meet future challenges with the same determination and values-based approach that guided this year's difficult process.
