A projected $1.5 billion in new revenue will add new drama to the final week of this year’s legislative session as the Indiana General Assembly grapples with how much to raise funding for public health, education and debt obligations.
State lawmakers have $1.5 billion more to work with than expected in the next two-year budget, according to revenue figures released by the Indiana State Budget Agency on Wednesday. But it’s unclear where that money will be directed.
The proposed version of the budget doesn’t include any expansion of school vouchers, which House Speaker Todd Huston has personally pushed for, nor does it finalize funding for mental health and public health commitments.
Indiana’s only predominately Black university is slated to miss out on a $10 million cash infusion under a budget proposal introduced by Senate Republicans on Friday.
The most glaring contrast between the Senate and House proposals is the way in which they intend to expand funding to charter schools.
Secretary of State Diego Morales is asking for salary increases for his employees and about $6 million in funding for an election cybersecurity program in the next two-year budget cycle.
The proposed changes could have big impacts for lawmakers, as the bill’s language would change the formula used to calculate pay raises for many–from the governor down to each legislator.
Gov. Eric Holcomb stressed in his State of the State address that further investments are needed in K-12 schools and higher education, workforce training and public health if Indiana expects to meet the talent demands of high-wage employers.
When drafting the state’s next budget, lawmakers will need to consider the state’s ongoing commitments and one-time obligations under the cloud of a potential recession.
The Indiana Economic Development Corp. is asking for $600 million over the next two years for a deal-closing fund, along with a one-time injection of $150 million for a revolving fund for land purchases. Democrats argue that Republicans already have given the agency a “blank check.”
The funding requests are part of the governor’s ambitious $3 billion “Next Level Agenda,” which calls on state lawmakers to approve historic investments in education, public health and state employee salaries.
Republican legislative leaders have been urging caution on new spending, but Gov. Eric Holcomb remains hopeful that his legislative priorities can be funded. See what he had to say in this Q&A.
The lackluster economic forecast comes as Indiana lawmakers prepare to return to the Indiana Statehouse on Jan. 9 to craft a two-year budget and consider funding increases to education, public health and workforce development programs.
Indiana’s English learner population has increased by 52% over the last five years.
Also looking for state support are initiatives related to workforce training, road funding, energy standards and affordable housing.
Republicans, who hold the supermajority, seemed intent on keeping excess spending low, while Democrats urge investing more in education and public health.
As the Legislature prepares to consider Gov. Eric Holcomb’s proposal to return $1 billion of the surplus to taxpayers, some legislators and business leaders question whether that’s the best use of the windfall.
The news comes as state lawmakers prepare to consider Gov. Eric Holcomb’s proposal to send $1 billion to taxpayers in the form of $225 refund checks.
Indiana Gov. Eric Holcomb said Wednesday he now believes the state’s individual income tax rate could be cut while maintaining enough state revenue for additional spending needs in the next state budget to be adopted in 2023.
The State Budget Committee on Thursday projected booming growth in Indiana’s budget surplus, setting up a debate during the upcoming legislative session over possible tax cuts.
