State Budget – Indianapolis Business Journal

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2026 Innovation Issue: Smart manufacturing grant program boosted sector

May 1, 2026

Demand for the program was exceptionally high, and funds were exhausted each year. But the Legislature didn’t fund the program in the state’s current budget.

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Judge hears motions in Indiana University trustee lawsuit

April 26, 2026

Mackenzi Klemann, Indiana Capital Chronicle

The American Civil Liberties Union of Indiana argued that a last-minute provision to the state budget unconstitutionally singles out IU by removing the ability of alumni to directly elect trustees.

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State Budget Committee approves toll road hikes, child care boost

April 17, 2026 | Leslie Bonilla Muñiz, Indiana Capital Chronicle

The panel green-lit a deal letting the Indiana Toll Road’s private operator to raise rates twice annually and the governor’s request to spend $200 million expanding a frozen low-income child care program.

2025 Year in Review: Revenue shortfall strains budget

December 26, 2025 | IBJ Staff

The final budget boosted the tax on cigarettes by $2 per pack, with similar hikes on other forms of tobacco. Those tax increases were expected to generate $850 million over the two-year budget cycle.

Indy-based, foster youth-focused nonprofit faces $600K state, federal funding loss

December 23, 2025 | Taylor Wooten

The cuts, which represent about 12% of Foster Success’ budget for its Indiana programs, will curb access to basic needs assistance, education and job training, financial empowerment and networking.

Panel hears warnings on rising Indiana prison population, local corrections funding shortfalls

September 26, 2025 | Casey Smith, Indiana Capital Chronicle

Indiana lawmakers heard stark warnings that the state’s prison population is again nearing capacity while funding for local alternatives is shrinking.

Indiana agencies cut staff, contracts as mandatory spending plans roll in

September 22, 2025 | Leslie Bonilla Muñiz, Indiana Capital Chronicle

A grim May revenue forecast prompted lawmakers to cut most agency appropriations by 5% in the latest budget—and authorized the State Budget Agency to withhold another 5%.

Indiana slashing reimbursement rates for child care providers

September 4, 2025 | Niki Kelly, Indiana Capital Chronicle

Child care providers around Indiana will see reimbursement rate cuts of 10% to 35% as the state’s Family and Social Services Administration tries to close a $225 million funding gap.

Braun: Administration saved $38M in first 6 months, cut $72M from future spending

August 27, 2025 | Leslie Bonilla Muñiz, Indiana Capital Chronicle and Whitney Downard, Indiana Capital Chronicle

Indiana Department of Administration Commissioner Brandon Clifton told reporters that the direct savings would likely be reverted to the General Fund.

Indiana agencies outline spending cuts in pursuit of 5% reserve

August 8, 2025 | Leslie Bonilla Muñiz, Indiana Capital Chronicle

A grim May revenue forecast prompted lawmakers to cut most agency appropriations by 5% in the latest biennial budget—and authorize the State Budget Agency to withhold another 5%.

State agency plans aggressive new budget method to control growing Medicaid costs

August 7, 2025 | Whitney Downard, Indiana Capital Chronicle

Over the course of a decade, Indiana’s per-enrollee costs for certain Medicaid recipients are expected to surge by 43% and 72% for lower-income and elderly Hoosiers, respectively.

Analysis: Latest Indiana budget drops spending 7%—with cuts ‘telling’

July 16, 2025 | Leslie Bonilla Muñiz, Indiana Capital Chronicle

The $54.6 billion budget, approved in May, spends 3% more than its 2023 predecessor. But the state’s spending power has sunk 5% since then.

UPDATE: Fiscal leaders confident in Indiana’s finances with reserves at $2.5B

July 15, 2025 | Whitney Downard, Indiana Capital Chronicle

Reserves will be 11.2% of Indiana’s spending, at the lower end of the 10-15% recommended to maintain Indiana’s AAA bond rating.

State budget cuts impact Indiana alternative schools

July 10, 2025 | Samantha Camire, Chalkbeat Indiana

Amid state budget troubles, alternative schools lost more than $4 million in funding.

Indiana could miss out on hundreds of millions of federal funds under megabill

July 9, 2025 | Whitney Downard, Indiana Capital Chronicle

Some of the biggest funding reductions in the bill—like Medicaid reform—will be phased in, meaning it won’t immediately hit Indiana’s coffers.

Cigarette, gas tax hikes coming to Indiana on July 1

June 27, 2025 | Leslie Bonilla Muñiz, Indiana Capital Chronicle

The cigarette tax hike is the result of a last-minute compromise by Indiana legislators to address a projected revenue shortfall of $2 billion over the biennium.

Indiana workforce leaders aim to ‘salvage’ slashed dropout prevention program

June 23, 2025 | Leslie Bonilla Muñiz, Indiana Capital Chronicle

The Jobs for America’s Graduates program, which serves thousands of Hoosier students, was eliminated as a line item in the state budget during this legislative session.

50+ state employees—including IEDC workers—laid off as Indiana cuts take effect

June 11, 2025 | Casey Smith, Indiana Capital Chronicle

The Governor’s Office confirmed that agencies under both the education and commerce verticals announced staff reductions on Tuesday. The Indiana State Museum also let go of several employees last week.

State agencies instructed to withhold funds on top of 5% budget cuts

June 9, 2025 | Whitney Downard, Indiana Capital Chronicle

The directive follows a grim revenue forecast earlier this year that projected the state would have $2 billion less to spend in the next two-year budget, prompting lawmakers to institute 5% agency cuts largely across the board.

Funding for workforce training, manufacturing readiness and flight incentives in limbo after state budget cuts

May 16, 2025 | Cate Charron

Business leaders are encouraging state commerce officials to retain the programs that have led to what they say has been a “strong ROI” in the past.

Indiana Legislature adopts tight budget with cigarette tax hike, widespread cuts

April 25, 2025 | Cate Charron

The Indiana Legislature approved a pared-down $46.2 billion state budget bill early Friday morning that will triple the state’s cigarette tax and cut funding for a wide swath of entities and programs.

JUNE 12-18, 2026

Digital Edition

Orr Fellowship sees success in Evansville expansion

Susan Orr

Grand Park Sports Campus adds NFL flag football youth event

Mickey Shuey

Q&A: CEO leads OrthoIndy through period of growth

Daniel Bradley

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