After months of debate, Beech Grove Common Councilors passed the city’s 2026 budget — without slashing raises for union workers and potentially setting the city up for a legal fight.
The $19.4 million budget is slightly smaller than last year’s, when accounting for inflation, and preserves most funding for city infrastructure improvements and 3% cost-of-living increases for non-union staff. However, Mayor Jim Coffman’s administration found some savings in these areas, which are likely to impact city infrastructure and part-time workers.
“We did not cut any services, we did not defund anyone,” Councilor Elizabeth Lamping told residents at the end of the meeting. “We will see to it that everyone gets everything that they need. The future, no one knows, but we’re dealt what we’re dealt through the state legislature.”
Local governments across the state are between a rock and a hard place. New property tax reform laws will reduce revenue that local governments use for services, such as free community programming and street maintenance.
On Monday, Oct. 20, councilors approved the budget 4-3, with councilors Dan McMillan, Chris Duffer and Michael Hemmelgarn opposed.
But it’s unclear what the financial impact will be and the best way to brace for it.
Councilors Lamping and McMillan had previously suggested canceling raises for Beech Grove police and emergency medical service staff in order to bridge the funding gap. The change was scrapped because it would have violated the city’s contracts with local labor unions, which last through 2026.
Although the budget is settled for 2026, councilors are already anticipating an even harder budget season next year. That’s because the state’s tax cuts accumulate over time, meaning the city will be counting on even less revenue in the future.
Next year’s budget constraints will likely play a role in contract negotiations with first responders.
“I was glad to vote today to give everybody what they wanted, what they needed,” Councilor Mike Earnest said at the end of the meeting. “But just like everybody said, after this year, there’s no guarantee. Let’s hopefully buckle up and make sure that we can make some right decisions next year.”
Where the savings were found
Over the past few months, Coffman’s administration combed through the proposed 2026 budget and cut over $600,000 from a variety of government services. That includes cutting more than $122,000 from the motor vehicle and highway fund, which pays for sidewalks, city improvement projects and part-time wages.
Other departments also saw cuts for part-time workers. The senior center will forgo roughly $17,800 and the community center $28,700. Local programming, though, will remain the same, according to Clerk-Treasurer Samantha Stratton.
Beech Grove’s councilors voted to forgo their 3% raises and pay increases for the mayor and clerk-treasurer next year. The move was largely symbolic, however, as councilors are part-time employees. The measure will save less than $3,300.
“I think if we were going to do this, that we should have really done a lot more than $5,000,” Councilor Ryan Matkins whispered to other councilors during a 10-minute break during the meeting.
The budget is not the only financial challenge the city faced this year. Residents have advocated for councilors to make tough financial decisions to preserve the financial sustainability of the city-owned sewer utility, and the city as a whole.
Councilors approved a modest rate hike for the sewer services earlier this year amid warnings that the utility was “severely underfunded.”
The next Beech Grove Common Council meeting is 7 p.m. Monday, Nov. 3, in the Council Chambers of Beech Grove City Hall, 802 Main St. Community members can also livestream the meeting remotely.
A clarification was made on Oct. 22, 2025 to the description of the budget.
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Mirror Indy reporter Elizabeth Gabriel covers the south side of Marion County. Contact her at elizabeth.gabriel@mirrorindy.org. Follow her on Facebook at Elizabeth Gabriel, Southside Reporter and on X at @_elizabethgabs.
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