TERRE HAUTE, Ind. (WTWO/WAWV) — UPDATE: WTWO sat down with Mayor Sakbun to get a comment on the hiring freeze announced earlier Tuesday.
Mayor Sakbun stated, “The property tax fund is our general fund, and our general fund next year will be 82% police and fire. When you look at all the other departments and what we can do, there is a very limited opportunity. Obviously, we are not going to cut our public safety; we 100% need that. We’re just trying to find places where we can, not necessarily consolidate, but also be more efficient. We want to modernize technology and improve equipment, so we can do things like cut more locks or get to an alley that has been listed on 311 quicker. A lot of this is just internal systems and processes that we’re changing to be as reactive as possible to constituent concerns at the lowest possible dollar value.”
Mayor Sakbun also added that there were 8 positions lost through attrition and several private contracts removed that the city no longer uses, but that there were no layoffs.
Terre Haute Mayor Brandon Sakbun has announced a “strategic hiring freeze” across most city departments, according to a press release.
“Today, I am announcing a necessary step to fiscal responsibility within our city,” said Mayor Sakbun. “Our 2024 budgets came in under budget, and the city has continued to grow our reserves for 2025 and beyond.
The City of Terre Haute said it made this decision to “safeguard both the City’s fiscal health and core municipal services.”
The city ensured that this move was not a mass layoff and would not affect public safety roles—such as police, fire, transit and emergency services—or any seasonal positions.
“Unlike a blanket freeze, this approach ensures services are not decreased for constituents and deliberate staffing reductions take place through attrition,” said the City of Terre Haute in a press release.
The decision also follows Indiana’s Senate Enrolled Act 1, which significantly cuts tax revenue in future years, which the city said is the primary funding source for municipalities.
“Changes to the property tax formula enacted by the state legislature will begin to cripple the city’s finances in 2027. The majority of our capital projects are not funded by property taxes and will continue as planned,” said Mayor Sakbun.
Although no new positions funded by property taxes are being created, the city said certain “non-reverting fund allocations” are supporting new hires. The city added that investments in technology and software are enabling the city to consolidate roles.
“The easiest way to avoid any service reductions is to embrace growth and development. We need to increase our housing stock, recruit additional companies, support current employers, and develop our community lot by lot. Our priorities remain public safety, improving our archaic infrastructure, quality of life improvements, and growing Terre Haute,” said Mayor Sakbun.
The city has also consolidated several city departments, which will reduce overlap and trim its headcount. Those departments include Wastewater Utility, Street Department, Controller’s Office, Mayor’s Office, Human Relations Department, and Sewage Billing.
Moving forward, the city said it is “preparing for a prolonged period of tighter budgets.”
WTWO/WAWV has an interview scheduled with Mayor Sakbun for additional information and will update this article as soon as that is complete.
