Statehouse leaders plan to prioritize balanced budget over policy overhauls

Indiana Statehouse leaders said Monday that their legislative economic and business priorities during the upcoming General Assembly will be fixed on the budget. 

During the Indiana Chamber Legislative Preview event, Senate President Pro Tempore Rodric Bray, House Speaker Todd Huston and House Minority Leader Phil Giaquinta emphasized the need to craft a balanced budget during what is expected to be a challenging cycle. Huston said the state will need to support Medicaid’s rising price tag, which could require cutbacks on other line items. 

This budget cycle is more uncertain than in past years, Giaquinta said, and a poor December revenue forecast could sour the process.

The next legislative session, which begins in January, is expected to be packed with issues after several policy topics were put on the back burner during last year’s short session. Bray said non-budget-related issues might get some air time but major policy overhauls aren’t likely.

“The main issues that we’re looking at this year, none of them seem to have a really clear resolution,” Bray said. “We’re looking forward to getting our sleeves rolled up.”

The biggest issue on the table—and a major campaign talking point—is property taxes. Governor-elect Mike Braun has advocated for cascading property tax cuts, and the state studied the topic this summer. 

However, Bray said there will likely be no big changes this year, and instead, they are focusing on tweaks. There is potential to expand opportunities for local income tax increases, he said.

Huston said they will look at business personal property taxes. He did not elaborate on potential tweaks in response to reporters’ questions. Bray did not offer media availability after the event.

The Indiana Chamber began rolling out its policy recommendations for the 2025 legislative session, including tax policy recommendations and policy focus areas. Regarding business personal property taxes, the Chamber is seeking to remove the depreciation floor and create an exemption for newly acquired business equipment.

Specific policy goals beside tax reforms will be announced in January after member review, Chamber President Vanessa Green Sinders said.

With a new administration, Bray said it’s a good time to reevaluate whether measuring success by the amount of capital investment is the most accurate portrayal of the state’s economic development. So far this year, the state has courted at least $37.3 billion in planned private investment commitments.

Huston somewhat disagreed, saying that other metrics, such as jobs created and wages, are a byproduct of the capital investment total. 

As for expanding the energy grid’s capacity, Huston said the state needs to expand to meet the demand, specifically for energy-intensive data centers.

“I want every data center that we can get in the state of Indiana,” he said. “These are huge economic opportunities.”

Utilities have emerged as a hot-button issue following criticism of the Indiana Economic Development Corp.’s massive LEAP Lebanon Innovation District over its water needs. (LEAP stands for Limitless Exploration/Advanced Pace.)

In response to expensive utility project proposals, opponents have pushed for the state to instill more local-control guardrails so residents’ water and electricity aren’t depleted by large companies. 

Bray and Huston both said they are not convinced that they need to take action on the issue. The Senate leader said they don’t plan to override local control, either, while Huston said they instead want to help and support local governments. 

Republican leadership also said they plan to evaluate and potentially loosen childcare regulations to increase capacity.