Legislative Update: 1.17.25

Legislative Update: 1.17.25

Today's dispatch comes to you from the Monument Circle snow globe, where, despite days of tundra-like temperatures, the Indiana General Assembly is heating up after its first week of the 2025 Legislative Session.

  • ICYMI: Just last week, your Indy Chamber announced our 2025 Legislative Agenda to accelerate the Indy region's economic momentum through investment in people, place, and business. Give it a read and watch this feed for updates on our top priorities.
  •  Timelines: The Indiana General Assembly kicked off the 2025 legislative session on Wednesday, Jan. 8, and must adjourn Sine Die by Tuesday, April 29.
  • Priorities: Each of the four legislative caucuses have unveiled their legislative priorities for this session:

While there is broad agreement on which issues will soak up the most airtime, consensus is far from clear. Keep reading for the legislation getting “top billing”sorry, couldn’t help ourselves.

READ THE FULL LIST OF INTRODUCED LEGISLATION


Slim Pickins: State Budget

Passing a new $44 billion biennium budget will be the top priority and constitutional requirement in the next four months.

  • The December revenue forecast showed minimal revenue growth over the next two-year cycle:

    • 2026 revenues are expected to grow by a respectable $731.9 million (3.3%) over the previous year
    • 2027 projections show a meager $71.5 million (0.3%) increase
    • Takeaway: House and Senate leadership are cautioning against making new or increased budget requests

  • Governor Mike Braun previewed his budget proposal this week, outlining the fiscal approach of his new administration:

    • State agencies are tasked with identifying 5% in savings compared to current budgets
    • Proposed 2% increase in education funding, $362 million to close childcare voucher wait lists, and full funding for Medicaid growth
    • Funds the Health First Indiana program at $100M annually, a decrease from the last biennium 
    • Not included: funds for READI round three


Tax Man Cometh: Property Tax Reform

In 2024, the Indy region had the sharpest property tax increase of any large metro in the nation by percentage but ranks eleventh lowest in overall property tax burden.

So, how can we curb the pain of sharp increases, while recognizing the critical role that property taxes play in funding core local government services and investments in quality of life? That's the $1.6 billion question

  • A slew of proposals were introduced to address the issue, including SB 1SB 6SB 7SB 8SB 9, and HB 1402. None of these bills were heard in committees this week but will likely be considered soon.


School House Rocked: Sweeping Education Proposals

Bills introduced this session aim to fundamentally restructure public education in the state of Indiana. The future of how schools are funded, evaluated, and prepare students for life post-graduation is up for debate.

Nothing is more critical for the success of our state and region than the quality of our student outcomes and the fiscal accountability of our public institutions. The Indy Chamber will work closely with the legislature and local stakeholders throughout the coming weeks.

  • Indianapolis Public Schools: HB1136SB 8SB518, and HB1501 massively impact the largest district in the capital city and the state, significantly changing policy on school governance, referenda rules, property tax sharing, and facilities and transportation management.   
  • HB 1002:  In House Education, Chairman Bob Behning aims to reduce regulations on K-12 schools by eliminating references considered obsolete in the code—who agrees on exactly what is obsolete will be the heart of the debate.  
  • There were five other bills heard in Senate Education and Career Development, including SB 146 (Teacher Compensation), which is a priority bill for Governor Braun and Dr. Katie Jenner, Indiana’s Secretary of Education.   


Paved with Good Intentions: Funding Indiana's Road

The opportunity exists to add significant resources for Indiana to maintain and expand its roads and bridge infrastructure this session. The Indy Chamber would argue that new revenue creates the possibility to—for the first time—establish a pro-growth funding distribution formula that incentivizes growing communities instead of penalizing them. 

  • HB 1461, authored by Chairman Jim Pressel, is home to several road funding provisions: including changes to tolling language, the Community Crossings Matching Grant program, increasing the maximum amount that Marion County can raise with wheel tax and excise surtaxes, and providing Marion County the option to pass a referendum for additional road funding revenue. 


Doctor, Doctor: All Things Healthcare

The continuing debate on healthcare costs, preventative investment to drive improved public health, and the weight of the Medicaid crisis all drove the introduction of far-reaching proposals on health issues. We view health as critical to investing in people—the critical drivers of our state’s economic momentum:

  • SB 2, authored by Chairman Ryan Mishler, was heard in Senate Appropriations.

    • The bill caps enrollment in the Healthy Indiana Plan at 500,000 (current enrollment is nearly 700,000), limits individual access to the program to 36 months, and includes a new work requirement.  
    • It also implements new agency reporting requirements, and by requiring verification of income, residency, age, household composition, caretaker or relative status, and receipt of other coverage before enrollment. 

  • Health First Indiana: Dr. Lindsay Weaver, Commissioner of the Indiana State Department of Health, presented to the House and Senate Health committees on the program, initially funded in 2023, and now supports all 92 counties.


The First Acts: Executive Orders

Governor Mike Braun was sworn in on Monday, Jan. 13, as Indiana’s 52 Governor. During his first week, he issued 19 new executive orders, including the following:  

  • Executive Order 25-01 establishes a new structure for the Governor’s Cabinet. 
  • Executive Order 25-14 was issued in response to Students for Fair Admissions, Inc. v. President and Fellows of Harvard College and prohibits state agencies from implementing DEI initiatives.  
  • Executive Order 25-15 tasks the State Personnel Department with identifying state jobs that require post-secondary or graduate degrees and eliminating those degree requirements when possible.  

READ THE FULL LIST OF EXECUTIVE ORDERS


What's Next?

The General Assembly returns on Tuesday, Jan. 21. Look for a bill-tracking list in next week’s email to stay up to date on all the legislation the Indy Chamber is working on and monitoring. In the meantime, please reach out to Jenna Bentley or Taylor Hughes with any questions about the 2025 legislative session. 

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