Braun seeks 5% savings from agencies to pay for new priorities in next budget

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Gov. Mike Braun speaks to reporters Jan. 16 in his office at the Statehouse. (Cate Charron / IBJ Photo)

Ahead of his budget proposal presentation this afternoon, Indiana Gov. Mike Braun said Thursday morning that his administration wants state agencies to identify 5% in savings on average compared with the current budget to help pay for new priorities in the next two-year budget.

Braun and the Legislature will collaborate to craft the 2026-27 budget over the next few months. Both chambers must pass the budget before the end of April or face a special session to finish it. Braun will need to sign off on the budget before enactment.

More details about Braun’s budget proposal was scheduled to be presented to the State Budget Committee at 1 p.m Thursday.

Overall, he expects 2% overall spending growth in fiscal year 2026 and 1.7% growth in 2027, with new funding priorities including education, tax reform and public safety investments.

For education, he is proposing a 2% year-to-year increase in the budget that will be focused on supporting instruction and teachers.

He also is asking for a four-year phase-out of the state’s tax on retirement income, which Braun said “doesn’t amount to a lot in terms of the revenue.”

As for accomplishing his 5% goal, Braun said his staff will look for “low-hanging fruit, and the agencies that spend the most likely have the greatest ability to save.

He did not provide details on specific cost-cutting measures but said he and his eight cabinet secretaries will be searching for solutions over the next three or so months.

When asked, Braun also did not rule out eliminating jobs, saying some agencies need fewer employees while others need more.

“I always talk about doing more with less,” he said. “That’s not because you’re trying to be stingy. It’s because that’s called productivity.”

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5 thoughts on “Braun seeks 5% savings from agencies to pay for new priorities in next budget

    1. Keep Indiana great. Thank goodness we have Republicans who know how to run a government to keep us out of debt, and block those stupid, wacko California, Hollywood, George Soros, and Bill Gates liberal BS policies from ruining us.

  1. As opposed to the reversions under Holcomb? Get that data and compare. Reversions are the way of life in state gov’t. Agencies do not spend all of their approved budgeted amounts and are required to revert. It happened under the previous D and R administrations.

  2. Does any intelligent person think there was a more qualified candidate in the race for governor this past year? Give the guy a chance to prove what he can do as a leader.

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