Gov. Mike Braun doubles down on campaign promises in first State of the State address

In his first State of the State address, Indiana Gov. Mike Braun on Wednesday doubled down on several of his campaign promises, focusing heavily on economic issues.

“The state of the state is strong because Hoosiers are strong,” Braun said in his speech at the Indiana Statehouse addressing the full General Assembly. “Indiana does many things well, but the question in my mind we face is simple: Will that be a plateau or a foundation to build something truly exceptional?”

Many Republican lawmakers have already introduced legislation this session to enact key policies of Braun’s agenda, including his ambitious property tax plan, health care reform and the creation of an economic development office to support small businesses.

Here are the five priorities Braun highlighted Wednesday.

Property taxes

Braun gave a nod to Sen. Travis Holdman, R-Markle, who is carrying Braun’s property tax plan in Senate Bill 1. The Senate Republican caucus flagged the bill as its top priority earlier this month.

The governor’s proposal included additional homestead deductions and tax bill increase caps with targeted relief for seniors, low-income residents and families.

However, concerns exist about whether significant cuts would result in drops in local government funding or if other tax groups would pick up the burden. Braun has repeatedly said government spending cannot grow at a faster pace than what taxpayers make, and that the government needs to do more with less.

“It’ll have an impact on local governments, and I realize the taxpayers are struggling, and we have to put their needs first,” Braun said. “We will continue to have important discussions with local governments, school boards, about how to protect vital services like police, fire and schools.”

Economic development 

Braun also highlighted his plans to shift the state’s focus toward workforce development and small business development, including plans to restructure the Indiana Economic Development Corp. In doing so, he hopes to better spread resources across the state and reach existing employers. He also wants to create the Office of Entrepreneurship and Innovation, separate of the IEDC, to support small businesses.

He touted a partnership between Toyota and two high schools in Princeton and Evansville, in which students have been able to launch careers directly from the class. Thirty-eight students have been hired in production roles by the auto manufacturer, and 15 have become “advanced manufacturing technicians,” Braun said Wednesday.

A pair of teachers leading the program were present and received a standing ovation.

Braun issued a call to action to replicate such programs across the state.

“We’re taking a new approach, focused on building skills for Hoosiers currently in the workforce to match high value, high wage jobs that employers need to fill,” he said. “Maureen [Braun] and I lived the American dream of starting homegrown businesses in our hometown of Jasper, … and I want every Hoosier to have the opportunity to live that dream as well.”

Health care

Braun has already prioritized lowering costs and providing transparency in health care in his first few weeks in office, signing nine executive orders that direct state agencies to audit current programs and coverage as a means to find savings and to make more information available to consumers.

On Wednsday, he pointed to a Fort Wayne woman who received a nearly $1,350 bill for her yearly physical and blood work. He said Hoosiers should know what they will need to pay before they receive care.

“For too long this issue has been seen as too tough to tackle because of entrenched special interests,” he said.

Education

Braun reiterated his support of universal school vouchers, saying parents should be in “the driver’s seat,” a message that drew a standing ovation.

He proposed a 2% year-to-year increase in K-12 funding, amounting to $546 million over two years.

“Everything I do on this issue will always be based on one simple idea,” Braun said. “Parents are in charge of their own kids’ education.”

He also highlighted two education bills his administration supports.

Senate Bill 146 raises the teacher salary floor to $45,000 a year, an increase of $5,000. The bill passed the Senate Appropriations Committee last Thursday.

House Bill 1637  establishes the Office of School Safety nested in the Indiana Department of Homeland Security. Braun’s budget proposal would also allocate $5 million to improve school safety measures.

Immigration and public safety

The governor also touched on his plans to buttress the Indiana State Police’s funding to increase salaries and offer more comprehensive benefits. His proposal reflects a nearly $30 million increase in ISP’s operating budget.

He also spoke about the risks of illegal immigration and his plan to aid in President Donald Trump’s mass deportation effort. Braun signed an executive order earlier this week directing Indiana law enforcement agencies to fully cooperate with federal immigration directives, which is already required under Indiana law.

“Americans sent a clear message in November they do not want open borders,” the speech reads. “Indiana will do whatever we can to help secure our southern border and end this crisis that has brought deadly fentanyl and crime to our streets.”

Black caucus skips address

On Wednesday, most of the Indiana Black Legislative Caucus boycotted the event, instead opting to host their own rally. The boycott was based on Braun’s recent move to eliminate diversity, equity and inclusion in state government. The caucus has 16 members, all Democrats.

State Rep. Earl Harris, D-East Chicago, chairs the caucus. He told IBJ that the event, called the unity rally, intended to “make sure that the state continues down the right path and does not go backward.”

“We are here to unify, to show a cross-section of the community, to come together and express the importance of this and this was the right night to do it,” he said.

About a dozen people invited by the caucus took the microphone to speak at the fourth-floor event, which could be heard occasionally from inside the House chamber. State Rep. Carolyn Jackson, D-Hammond, led the group singing “Lift Every Voice and Sing.”

After Braun’s remarks, the caucus and attendees marched down to the third floor where lawmakers were exiting the House chamber.

State Sen. Fady Qaddoura, D-Indianapolis, who is not a member of the Black caucus, also boycotted Braun’s address.

Senate Minority Leader Andrea Hunley, D-Indianapolis, is part of the Indiana Black Legislative Caucus but did attend the State of the State.

Both House Speaker Todd Huston and Senate Pro Tem. Rodric Bray said that they are disappointed with the lawmakers who skipped Gov. Braun’s address.

“We want them at the table. They need to be at the table,” Bray said. “The fact that they decide not to be there is a little frustrating in that regard.”

Democrat, Republican responses

Following Braun’s address, Democrat leaders said that while Braun’s speech painted a great picture of what Indiana could be, they disagree with how he plans to achieve his goals.

They were especially critical of Braun’s property tax plan, which House Minority Leader Phil GiaQuinta called “a farce” and “a bait and switch.”

“Freedom means nothing if your family can’t afford a home. Opportunity means nothing if your child’s future depends on what school they can or cannot get into. And prosperity means nothing if it only is available to those at the top,” Senate Minority Leader Shelli Yoder told reporters. “Now it’s time for action because good intentions don’t build homes, speeches don’t lower medical costs, promises don’t pay teachers.”

Republican leaders, however, said Braun’s priorities align with their own goals.

“The details will need to be fleshed out, but it’s great when we’re in alignment and now we just got to work to get it all done,” Huston said.