Final budget compromise reached by Indiana House, Senate

UPDATE (April 24, 2025):

INDIANAPOLIS, Ind. (ADAMS) – The Indiana House and Senate have reached a final compromise on the state budget. The budget will include higher taxes on several forms of tobacco, including a new $2 tax on cigarettes in the state. And larger cuts than had been proposed to public health programs, economic development, and higher education.

Those moves came after a forecast last week that Indiana would have a projected $2 billion budget shortfall, with $400 million less being available in the current budget cycle.

Read more HERE

Senate Democrats released the following after the plan was hammered out:

Republican state leaders and Governor Braun presented Indiana’s final version of the two-year budget as the General Assembly works to navigate a $2.4 billion revenue shortfall. The Indiana Senate Democratic Caucus is urging leaders to stop pointing fingers and start delivering a budget that reflects Indiana’s values — and protects the people who need help the most.

“This shortfall didn’t come out of nowhere,” the caucus said. “It’s the direct result of economic fallout tied to Washington’s tariffs and trade instability that began in January. That’s not politics. That’s what our own state revenue experts pointed out in testimony.”

The caucus says Hoosiers want more than another round of tax shifts, slogans and selective oversight. They want a government that protects what matters: strong public schools, affordable healthcare, and fair, transparent budgeting.

See more here

UPDATE (February 21, 2025):

INDIANAPOLIS, Ind. (ADAMS) – The Indiana House is advancing a budget proposal to the Indiana Senate. House Bill 1001 was passed this week and has already been sponsored by two state Senators. It includes plans for most state agencies to cut spending by five percent, as well as a plan to spend more on education for K-12 students over the next two years.

The budget proposal also drops income tax rates for 2026 and 2027.

Read more HERE

Indiana House Democrats responded with the following:

Today, Feb. 17, the House Ways and Means Committee amended and passed House Bill 1001 along partisan lines 14-7. The main topic of discussion was Chairman Jeff Thompson’s (R-Lizton) amendment to the proposed budget. The committee accepted one amendment from State Rep. Gregory W. Porter (D–Indianapolis) that restores the 15% cut to the Indiana Civil Rights Commission (ICRC), reinstates the Indiana Native American Indian Affairs Commission (INAIAC) and provides a $1 million increase for the Minority Health Initiative.

“First off, I am thankful my amendment passed to restore critical funding to the ICRC, reinstate the INAIAC and provide some additional dollars for minority health. This state budget has to include provisions for all Hoosiers, including our marginalized communities.

“But the majority’s amendment is lackluster and leaves a lot to be desired. The funding for our K-12 public schools is inadequate with many corporations receiving cuts. Higher education is flat-funded even though our college-going rate is a dismal 53%. There’s no mention of the roughly 10,000 vulnerable Hoosiers on the Medicaid waitlists. There’s no money for our trails or land preservation.

“Money is tight, but we should prioritize funding for programs that benefit Hoosiers. We have a long way to go until this budget is truly beneficial.”

ORIGINAL STORY:

INDIANAPOLIS, Ind. (ADAMS) – Indiana Governor Mike Braun is proposing cutting the state budget by five percent on average. The Republican says there would be a small increase in education funding and Medicaid will be fully covered. Braun is asking his eight cabinet secretaries to identify where their agencies could be cut to help pay for education spending, tax reform, and universal vouchers.

He also said he is not ruling out cutting another five percent in the next biennial budget in 2027.