The Lake County Council gave initial approval of its 2026 budget, which maintains its 2025 budget numbers, amid the first budget cycle after the state legislature approved Senate Enrolled Act 1.
The Lake County Board of Commissioners Wednesday vetoed a hiring freeze ordinance that the council approved last week as part of its 2026 budget planning process.
Senate Enrolled Act 1 was a property tax bill that will save two-thirds of taxpayers up to $300 on their 2026 property tax bill while local governments will lose $1.4 billion through 2028. Gov. Mike Braun signed the bill into law April 15 and called it a “historic” plan to reduce property taxes for most Hoosier homeowners while limiting future tax hikes and making the tax system fairer and more transparent.
During the budget workshop earlier this month, Lake County Council finance director Scott Schmal said the county will have to be “a little more mindful and thoughtful” as it approaches its 2026 budget.
Council President Christine Cid, D-5th, said in a statement that state estimates reflect that Senate Enrolled Act 1 will mean a $30 million reduction in the county’s budget by fiscal year 2028.
“We will be working over the next year to find additional ways to reduce the impact of the anticipated shortfall in order to maintain the services we deliver to the public,” Cid said.
While the county’s growth quotient was 4%, which means the county can increase its property tax levy by 4%, about 80% of that growth quotient “is carved out” toward homestead credits, which is a new component of Senate Enrolled Act 1, Schmal previously said.
That leaves about $1 million for the county to utilize, Schmal previously said, but most of that has been committed to cover contracts or state-mandated funds.
“Any increases in budget would need an offset somewhere,” Schmal previously said.
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To prepare for the expected shortfall, the county kept the 2026 budget the same as in 2025, Cid said. The county did not offer salary increases and instituted a hiring freeze for departments with employees not under a collective bargaining agreement through Sept. 30, 2026, Cid said.
Lake County Councilman Randy Niemeyer, R-7th, previously said the proposed 2026 budget shows revenues and expenses in the approximately $199 million range, but is off by approximately $500,000. As the council workshops the budget, the revenues and expenses will balance out, he said.
But departments have requested a total $3.1 million more in revenue for the proposed 2026 budget compared to the 2025 budget, Niemeyer said.
Last week, the Lake County Council approved an ordinance restricting the hiring of new county employees through Sept. 30, 2026. Niemeyer previously said not filling vacant positions will save the county approximately $1 million.
The Lake County Board of Commissioners Wednesday voted to veto the hiring freeze ordinance in a 2-1 vote, with Commissioner Jerry Tippy, R-2nd, voting against the veto.
Tippy said he voted against the veto because he felt the council, as the county’s fiscal body, should have all the tools it needs to prepare for the impacts of Senate Enrolled Act 1.
“I know that we have to be prepared for Senate Enrolled Act 1. I just feel that it was a tool the council needed to prepare for it, so they should have it,” Tippy said.
Commission President Michael Repay, D-3rd, said he voted to veto the ordinance because while he understands the council’s intent with the ordinance, he felt it was too strong. Repay said he understands that some positions haven’t been filled in years, but if a current employee quit or left, then that position should be filled.
“I understand, appreciate and agree with the principle of it, it’s just it would’ve attached some strings or tied their hands behind their back in a way they didn’t need to,” Repay said.
Cid said the council passed the ordinance as a proactive measure “to save cost without departments having to reduce their 2026 budget.” While the state legislature may pass new laws to address impacts caused by Senate Enrolled Act 1, Cid said that isn’t a guarantee.
“Waiting to see what happens and hoping for the best is not an option. We need to be prepared for what may be coming,” Cid said.
The council has the option of meeting within 60 days to override the veto, Cid said.
Beyond the impacts of Senate Enrolled Act 1, Lake County has also been impacted by inflation, with utility costs expected to rise by about $1 million and insurance increasing by about $5 million in 2026, Cid said.
“Just like every household must operate within its budget, the council will take the necessary steps to continue operating within its budget, as it has, with minimal impact to the public,” Cid said.
The council voted 6-0 Tuesday to give initial approval to the 2026 budget. The next budget meeting will be Oct. 14.