Indiana Lawmakers Get Unexpected $1.5B For Budget In Latest Forecast

By Whitney Downard, Indiana Capital Chronicle

April 19, 2023

The General Assembly will have another $1.5 billion under the latest forecast to incorporate in the two-year budget before session ends in just ten days.

“Indiana is doing great, investments are showing the fruits of our labor,” Rep. Jeff Thompson, R-Lizton, said. “It gives more flexibility and we’ll find a spot to land.”

Sen. Ryan Mishler, R-Mishawaka, urged caution – noting continued increases projected under Medicaid as the rate of economic growth slows from the record-breaking pace of recent years.

“We’re just fortunate to be in (this) position,” Mishler said. “I’d rather be in that position than some of the other states that don’t have those opportunities.”

He said that Senate Bill 1 was guaranteed to see an increase to shore up the comprehensive mental health crisis system under 988. Whether that would include a line item or a monthly phone fee remains unclear.

“We’ll talk after this meeting about the cigarette tax, 988 (phone fees). Different things have been thrown out but this does add another option,” Mishler said.

But Senate Bill 4, which allocates more funding to local public health departments, likely won’t be as lucky.

“That’s more than just the funding; I think you have a lot of members who have some issues with the bill itself,” Mishler said. “That’ll be a tougher one, probably, to increase the funding.”

But where the two budget architects will meet in the final budget hasn’t yet been determined – and the $1.5 billion adds a new wrinkle to the negotiations.

Thompson and his caucus included an expansive increase in funding for vouchers combined with accelerated income tax cuts while senators prioritized paying down debt obligations. Additionally, Mishler said potential property tax relief, as proposed by Thompson, wasn’t finalized.

“We’ve got some ideas but we’ll find out in the next couple of days,” Thompson said.

Legislators must finish drafting the budget before April 29, when they are due to sine die. Following the forecast, members will continue to finalize details behind closed doors before introducing the final version and approving it next week.

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