The new budget proposal provides more funding for operations and business-promotion support for the Indiana Economic Development Corp., but cuts five funds and programs totaling $35 million.
To further close the gap, leaders also said they would reduce planned spending for public health, higher education and government agencies.
An updated revenue forecast presented to the Budget Committee projected the state’s revenue will flatline from 2025 to 2027.
The body opted to accept just three changes to House Bill 1001. Another 60-plus amendments, mostly from the chamber’s 10-member Democratic caucus, were rejected.
Senate fiscal leaders presented a conservative state budget plan Thursday morning that drops universal school choice and extraneous spending.
The Trump administration is considering cuts or changes to spending on Medicaid, education and other programs that could impact the state budget.
Indiana employers who pay for additional staff training that leads to increased wages could be partially reimbursed for the investment.
The district’s finances face heightened uncertainty as Indiana lawmakers advance bills that cap property tax revenue and require IPS to share local property tax revenue with charter schools.
The two-year budget approved by Indiana House lawmakers and now moving through the Senate would increase per-student base funding for some virtual public schools by as much as 50%
The Indiana State Budget Agency noted that higher-than-expected collections from income tax revenue outweighed lower-than-expected collections from sales tax and interest revenue.
School officials and advocates, in particular, denounced the dual legislation considered Wednesday because of the possible the double-whammy hit to budgets.
Despite language in the state budget that appears to terminate the state’s contract with the nonprofit, Gov. Mike Braun’s office now maintains the intention is not to force IHS to give up its building.
The state of Indiana receives more than $20 billion from the federal government annually, or 44% of its budget, and is the third-most reliant state on federal dollars.
Lawmakers on both sides of the aisle have advocated for this exemption for years.
The historical society owns the downtown Indianapolis building where its headquarters, museum and archives are housed. However, the state owns the land.
But House Speaker Todd Huston, R-Fishers, has said repeatedly that Indiana lawmakers don’t make policy simply to raise money.
Lawmakers have less to spend due to slowing growth in state tax revenue and ballooning Medicaid costs—both residual effects of the pandemic.
Income taxes drove the overall increase, with collections up 4.7% more than the agency anticipated.
The two-year spending plan funds many of Gov. Mike Braun’s agenda items—including additional funding for private school vouchers—but doesn’t include several state tax cuts the new governor proposed.
Indiana Gov. Mike Braun is scheduled to present his proposal to the State Budget Committee on Thursday afternoon.
