Gary council to look at city budgets again, approve by end of October

At its Tuesday meeting, the Gary Common Council sent four budget-related ordinances to its finance committee for public hearing before council members approve the final budget.
The council is expected to approve all budget ordinances by the end of October. The Gary council meets biweekly, and its final October meeting is Oct. 21.
Although the budget ordinances were on third reading, the seven present council members unanimously voted to send the items back to committee. Council members Mary Brown, D-3rd, and Darren Washington, D-at large, were both absent from Tuesday’s meeting.
Ordinances sent back to committee include those approving city employee salaries in general, police and fire departments; police and fire pensions; expenses for the general fund and parks, fire and police departments; the Gary Public Transportation Corporation budget; and the redevelopment salary and operating budget.
Proposed budgets for the mayor’s office, council and fire department decreased for next year.
The police department’s budget increased by nearly $669,000 for 2026, according to budget documents.
Proposed salaries for the Gary mayor’s office are the same as 2025, according to budget documents, including Mayor Eddie Melton’s salary, which is proposed as $90,661,63. Council members are expected to make $35,000, which is equal to 2025 levels.
Police Chief Derrick Cannon is expected to make $111,116.54, which is the same as 2025. All proposed police department salaries are equal to those in 2025, according to budget documents.
Fire Chief Larry Tillman is expected to make $111,116.54, which is also the same as 2025. Proposed fire department salaries are also equal to 2025 salaries.
The proposed Gary Public Transportation Corporation budget includes about $5.72 million in full-time salaries, which is nearly $297,000 more than 2025. Part-time salaries decreased about $20,000, according to budget documents.
The transportation corporation’s total proposed budget is $1.35 million, a $376,373 decrease from 2025.
The proposed redevelopment budget has Executive Director Christopher Harris with the same salary as 2025, which is $92,369.38. The department’s total proposed budget is $248,267, according to city documents.
This budget season is the first for Gary since Senate Enrolled Act 1 went into effect. Washington previously told the Post-Tribune that the legislation could have unprecedented consequences for Gary.
He was previously worried that the city would have to implement a local income tax on top of the Lake County tax to fund its resources. The majority of Gary’s tax dollars come from homeowners, Washington said, and the city doesn’t have enough industry to make up for the property tax relief, according to Post-Tribune archives.
It’s also the first budget season since House Enrolled Act 1448 went into effect, which requires Gary to pay more than $12 million to East Chicago and Michigan City after a mistake by the State Comptroller’s Office that was supposed to address the financial burden after the move of Majestic Star casinos.
Gary owes more than $6.4 million to East Chicago and more than $5.7 million to Michigan City, according to Post-Tribune archives.
Money will be deducted from state comptroller funds and money appropriated by the Indiana General Assembly, according to bill documents, and money will be withheld for 10 years.
The city was originally told that payments would start this year, but because the 2025 budget was passed, payments were held off until 2026, according to Post-Tribune archives.
The Gary Common Council’s finance committee will hold public hearings on budget ordinances before final approval.