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.
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An updated revenue forecast presented to the Budget Committee projected the state’s revenue will flatline from 2025 to 2027.
Read MoreDemand 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.
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.
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.
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.
Despite Thursday’s positive forecasts, Republican state fiscal leaders showed no signs of any spending boosts for the tight budget that took effect July 1.
Indiana lawmakers heard stark warnings that the state’s prison population is again nearing capacity while funding for local alternatives is shrinking.
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%.
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.
Indiana Department of Administration Commissioner Brandon Clifton told reporters that the direct savings would likely be reverted to the General Fund.
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%.
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.
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.
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.
Amid state budget troubles, alternative schools lost more than $4 million in funding.
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.
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.
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.
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.
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.
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.
