Every fall, Gary leaders hash out one of the most important plans of the year: the city budget. It decides how much money goes to things like police, fire, streets, parks, and keeping the lights on at City Hall.
For the past three years, the city’s budget has been inflated by American Rescue Plan Act (ARPA) funds, which puffed the coffers by $80 million. However, the window for using those funds is slowly closing, as all money received through the legislation had to be appropriated by December 2024. All projects must be completed by 2026.
With the passage of Indiana SB 1, Gary officials are also heading into budget season facing shrinking property tax revenue, raising the prospect of service cuts, delayed projects, or new taxes as the city looks for ways to fill the gap.
But if you’ve ever wondered how the budget actually gets made and when residents get to weigh in, here’s the process broken down, step by step.
Step 1: Departments Make Their Wish Lists
It all starts with city departments. Each one, from public safety to public works, sends in what they think they’ll need for the upcoming year. That might include salaries, equipment, maintenance, or new programs.
The city’s controller, who handles the finances, works with the mayor to pull all those requests into a single draft budget.
Step 2: The Budget Goes Public
Before anything can be approved, Indiana law says the proposed budget, tax rates, and levies must be posted for the public to see. This “Notice to Taxpayers” has to be online at least 10 days before the first hearing. The public hearing date this year is set for Tuesday, Oct. 7.
Step 3: Residents Get a Say
Gary’s Common Council holds a public hearing on the budget. This is where residents can speak up before any vote happens. By law, the council has to wait at least 10 days after the hearing before adopting the budget. The adoption date this year is set for Tuesday, Oct. 21.
Step 4: Council Votes on the Budget
After the public hearing and any changes, the council votes on the final budget, tax levies, and tax rates. They must adopt it by Nov. 1 each year.
Step 5: The State Double-Checks
Once the council passes the budget, it goes to the Indiana Department of Local Government Finance. The state makes sure Gary followed all the rules and that the tax rates and spending plan add up.
Step 6: Final Approval
The state issues what’s called a Budget Order, officially certifying the city’s budget, rates, and levies — usually by Dec. 31. In simple terms, it’s the state’s final stamp of approval that locks in Gary’s spending plan and tax rates for the year.
Step 7: The Budget Goes to Work
Once certified, the controller’s office keeps track of spending and revenues yearlong. The city also files financial reports and gets audited to make sure the money is handled correctly.
Gary’s city limits overlap several taxing districts, so parts of the city fall into different areas depending on how district lines are drawn — often following township or municipal boundaries. In each district where the city lies, Gary Civil City is one of the units that can levy property taxes, meaning residents here pay the city’s levy along with others, like for the county or schools.
The state uses tax district numbers (like 004 – Gary-Calumet, 017 – Gary-Hobart Township, and 003 – Calumet-Gary ) to track property values, tax rates, and levy authority for each parcel. As a result, property tax rates can vary across Gary because different districts have different taxing units and limits under state law. Knowing your district helps you understand which levies apply to your property and how local budget decisions affect you.
