Fiscal policy takeaways from Wednesday night’s gubernatorial debate

Jennifer McCormick and Sen. Mike Braun (photo courtesy Fox 59/CBS 4)

Republican U.S. Sen. Mike Braun and Democrat Jennifer McCormick squared off on fiscal policy issues and more Wednesday night in the first of two gubernatorial debates on back-to-back nights. 

Candidates both tried to explain how they would improve wages in Indiana during the event broadcast by WXIN-TV Channel 59 and WTTV-TV Channel 4. They also weighed in on subjects such as raising the minimum wage and paying for infrastructure improvements.

The economy continues to be the primary issue for Hoosiers heading into Election Day on Nov. 5 , according to a recent poll.

Braun and McCormick, along with Libertarian Donald Rainwater, will debate again at 6 p.m. Thursday on WISH-TV Channel 8. A final televised debate organized by the Indiana Debate Commission will air at 7 p.m. Oct. 24.

Hoosiers have until next Monday to register to vote. Early voting begins Tuesday. 

Raising the minimum wage

Indiana’s minimum wage sits at $7.25 an hour, the federal minimum. And both candidates left the door open to raising the wage floor in their remarks Wednesday night. 

McCormick was in favor of an increase, mentioning upwards of $15 an hour. However, she said the increase doesn’t address the root issues.

“Even if we raise it, it becomes, ‘what is that threshold?'” she said. “$15 an hour really doesn’t go very far right now.”

She said a hike is overdue, noting that Statehouse Democrats have tried and failed to pass an increase over the past few years.

Braun said he would consider a higher minimum wage, but was hesitant to definitely say yes. Instead, he said he wants to create a diversified business environment and support economic development to catalyze higher wages. 

Both candidates agreed low wages are a significant problem in the state. 

Braun leaned on his background as a business leader and said his expertise will translate to a bolstered business environment as governor, ultimately leading to more competitive wages. 

“We need to make sure we fertilize a field of entrepreneurs, because they oftentimes are that next best business that grows wages and opportunities for hardworking Hoosiers,” Braun said.

McCormick said it would take a number of factors to improve finances for Hoosiers, especially lowering health care and utility costs. She also cited her economic development plan that calls for reforms to the Indiana Economic Development Corp. and spreading economic development dollars to all counties.

“What we did is we took an approach to make it business-friendly but also make it Hoosier-friendly,” she said. “It goes back to getting those utility costs down for everyone, and also health care costs.”

Road funding

The candidates were asked how they would make sure the state’s roads would be maintained and improved going forward after the Indiana Department of Transportation raised flags about possible looming shortfalls as gas-tax revenues decline. A recent study found Indiana would need at least $2.4 billion more in funding to eliminate poorly rated local roads and bridges across the state over the next 10 years.

McCormick blamed the shortfall on the past two decades of the Republican supermajority in the Indiana General Assembly. The issue won’t be fixed overnight, she said, so it requires a long-term plan and acknowledgment of the price tag.

“The infrastructure issue is beyond roads,” she said. “I think we’re all aware of that everything in this is expensive, whether it’s connectivity with broadband, whether it’s our bridges, whether it’s our watershed dams, whether it’s our sewers, whether it’s our water pipes, the list goes on.”

It’s an issue critical to Hoosiers, she said, and threw a jab at Braun for voting against the federal Infrastructure Investment and Jobs Act. 

In response, Braun said he, unlike McCormick, has worked on bills at the federal level to improve state infrastructure. He brought up her lack of legislative experience and said a record on the subject matter is typically required. 

He also reflected on his hometown of Jasper, which requires two-lane winding highways to get there and is along the route of the planned Mid-States Corridor project. 

“I went there to improve upon it—did an entrepreneurial bill with skin in the game that will help local areas actually weigh in on their own destiny,” he said. “I’ve heard nothing like that out of her.”

Paying for their proposals 

A constant topic facing both campaigns is how each candidate plans to pay for the changes in their policy proposals. 

Braun’s slate of tax cut proposals has been criticized for lacking a tangible revenue-replacement component. His property tax plan drew alarm about how it could potentially impact local governments should his tax cuts be implemented. 

Reducing inefficiencies and streamlining government at all levels will result in savings and support his proposals, Braun said. On several of his proposals, including increasing teacher pay, he pointed to shrinking government as a means to achieving his vision. 

“What I’m doing is just simply saying, don’t ask the taxpayers for more than what they can afford to do,” Braun said. 

McCormick said her property tax plan would strike a balance between tax savings and providing adequate funding to local governments. As for increasing teacher pay, she said the state needs to rebalance the school-funding formula so schools receive enough funding for higher teacher pay.

Addressing the Medicaid shortfall

Following Indiana’s estimated $1 billion Medicaid shortfall, state officials and lawmakers are mulling over how to remedy the oversight and reverse the trajectory of the evergrowing expense. 

The health care system is broken, Braun said, because it costs too much. He said he has a track record both in the U.S. Senate and his own business of dealing with and lowering health care costs. He said he will find a way to lower those costs for Hoosiers as he did for his employees. 

“Our own state needs to start embracing transparency and competition to make sure our costs of health care are lower,” he said. “That is how we started lowering Medicaid costs.”

McCormick emphasized the dramatic impact of cutting Medicaid services, saying she’s heard from families worried of losing coverage. With a significant portion of Indiana using Medicaid, there needs to be a review to find answers for why that financial mishap occurred, she said.