INDIANAPOLIS — Indiana lawmakers could be within 24-hours of deciding on the state’s budget for the next two years.
Republican leaders in the House and Senate released their version of the budget Wednesday afternoon.
Republicans call this budget fiscally responsible and point to several measures in it, like cuts to income taxes over the next several years that Republicans say are happening sooner than originally proposed with a projected income tax rate of 2.9% in 2027 instead of 2029.
Right now, Hoosiers pay 3.15% in income tax. That rate would go down to 3.05% in 2024 and 3% in 2025.
Republican leadership also pointed to a budget that continues to pay down the pre-1996 Teachers’ Retirement Fund.
Democrats, however, say the budget woefully underfunds measures to improve the health of Hoosiers and will be devastating for public schools.
Rep. Greg Porter, D-District 96, the ranking Democrat on the House Ways and Means Committee, the committee that hears the budget in the House, likened the Republican version of the budget to bland food.
“When it comes down holistically, it’s seasoned a little bit. This food, it’s bland, but we’re going to give you a little bit so you can swallow it, but Democrats are not going to swallow this,” Porter said of the budget.
Porter called Republicans' expansion of school vouchers despicable, saying it will take money away from public schools.
Close to half of the state’s $44.5 billion budget goes to funding K-12 education. This budget has $2 billion more for K-12 funding than the last one.
In it, the amount the state will spend on the school choice program is nearly doubled. That program gives families vouchers if they want to send their kids to private schools.
Republican leaders said the state’s projected $1.5 billion in extra revenue gave them extra flexibility.
“Our caucus is supportive of parental choice in schools and always has been and will continue to be as we try to continue to move our state forward and improve our education,” said Senate President Pro Tempore Rodric Bray, R-District 37.
The budget laid out by Republicans Wednesday also includes $160 million of state money to cover the cost of students’ textbooks.
It also calls for $100 million, split evenly over the next two years, to help overhaul the state’s mental health care system.
Republicans called it a good start.
“I will acknowledge that more is needed than $50 million and $50 million, but what they can spend as they develop these programs and what can be useful for them, this is a good start in addressing those needs,” said Bray.
Part of that overhaul would include a 988 crisis hotline people could call to get help for themselves or a loved one having a mental health crisis. Early proposals called for raising the tax on cigarettes to fund the hotline. Another proposal would have added a monthly fee to cell phone bills.
The Republican version of the budget released this afternoon didn’t have either funding proposal in it.
“I don’t like to add another tax to the state of Indiana for obvious reasons. The idea of a cigarette tax or 988 tax, which we could have used for this, is better saved not to do at all or better for another day when we need it,” said Bray.
In his version of the budget, Gov. Eric Holcomb requested $350 million for public health programs to get Hoosiers healthier.
Republican allocated $225 million for those measures.
“We felt like this was an appropriate number to see what the outcomes are and measure the success of the programs,” said House Speaker Todd Huston, R-District 37.
Democrats called that a start.
“Ladies and gentleman, we have a $1.5 billion over revenue forecast and we can’t fund public health at the rate or anything like that for people? It’s just not sensible at this point,” said Porter.
The budget has to sit for 24 hours before lawmakers can vote on it. Lawmakers could take that vote as early as tomorrow afternoon.