~ The City of Bloomington's proposed budget for 2026 has been released by the Thomson administration, with a focus on adapting to new state laws and implementing a new approach to budgeting.

The budget proposal is shaped by two significant factors: Indiana's Senate Enrolled Act 1 (SEA 1) and the City's transition to Priorities-Based Budgeting (PBB). SEA 1 introduces financial constraints by phasing out local income taxes and limiting access to short-term bonding for capital projects. This requires the City to reassess its services, funding, and priorities.

Last year, when the Thomson administration took office, the City was facing a $16 million operating deficit. The proposed budget for 2026 includes $54,017,896 in revenue and $65,206,660 in expenditures, resulting in a total general fund deficit of $11,188,770.

The General Fund is the primary operating fund for the City and supports essential services such as public safety, administration, and public works. It differs from other funds that are legally restricted for specific purposes.

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Overall, the proposed budget for all departments, restricted funds, and capital projects is $147,150,078 across all funds.

Mayor Thomson stated that they cannot do more with less but can meet this challenge with clarity and purpose. The focus will be on delivering core services while maintaining what has been built and honoring commitments made to residents. The three principles guiding this approach are delivering core services, maintaining existing infrastructure, and honoring commitments made to residents.

To support this shift in budgeting approach, the City has begun implementing PBB. This process reorganizes spending by programs and aligns them with six priorities developed by the Administration and City Council: High-Performing Government; Affordable Housing and Homelessness; Economic Development; Public Safety; Community Health and Vitality; Transportation.

While full implementation of PBB is expected for the 2027 budget cycle, the 2026 proposal introduces a new structure that increases transparency and provides early insights into how programs align with community priorities. The program allocations by priority area are currently estimated manually, but future updates will refine the level of detail and sorting of programs as implementation continues.

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The City Council will hold budget presentations over two weeks, beginning on Monday, August 18. The first week will include presentations from various divisions such as Legal, Human Resources, Information Technology Services, and Public Works. The second week will continue with presentations from Housing and Neighborhood Development, Capital Improvement Board, Economic & Sustainable Development, Bloomington Fire Department, Bloomington Police Department, and Dispatch.

The final presentations will take place on Wednesday, August 27 and include departments such as Community & Family Resources, Parks and Recreation, Utilities, Sanitation and Animal Shelter. These budget presentations are open to the public and can be livestreamed on catstv.net or Zoom.

The full 2026 budget proposal is available for public viewing at bloomington.in.gov/budget. It includes program inventories, priority-based memos, and departmental breakdowns.

Overall, the Thomson administration is focused on co-creating with the community while leading with transparency and accountability to build a city that not only works but also sparks joy for its residents. Despite the changes in financial rules brought about by SEA 1, their commitments to the community remain unchanged.

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