Handouts Instead of a Hand Up: Final State Budget Fails Working Hoosiers
Faced with a $2 billion budget deficit, the majority made cuts in all the wrong places.
Dear neighbor,
In the early hours of April 25, the last day of session, Indiana Republicans passed the final version of the state budget, House Enrolled Act 1001. The budget was unveiled Wednesday at 6 p.m., which gave House Democrats only 24 hours to review the document. Statehouse Democrats were not included in budget negotiations or discussions, meaning our communities didn’t get a seat at the table.
Due to President Trump’s tariffs, Indiana is $2 billion short for our two-year budget. We had to cut our spending by close to 4%. House Democrats’ goal was to preserve vital government services, like K-12 education and Medicaid, while cutting administrative and bureaucratic costs. But this budget prioritizes all the wrong things. Essential services Hoosiers rely on are cut, while income tax cuts and handouts will continue for Indiana’s wealthiest families. Our working and middle-class families will bear the brunt of these budget cuts.
Parts of the budget I support and have advocated for many times include:
Increasing the cigarette tax to nearly $3 per pack to remedy the $2 billion budget deficit. Revenue generated from increasing the cigarette tax will go to the Medicaid program.
Tapping into the Pension Stabilization Fund to offset the deficit. The state deposited an extra $3.7 billion into the fund due to an influx of federal dollars during COVID-19.
A 30% budget cut for the Indiana Economic Development Corporation (IEDC) after concerns with the LEAP district, land purchases and a lack of transparency.
Requiring the Indiana General Assembly to approve and oversee the appropriation of funds to the office of the Secretary of State. The current Secretary of State has given over $308K in spot bonuses to employees and awarded millions in secretive no-bid contracts.
My concerns with the final budget include:
Traditional public school funding increases by only 3.3% in 2026 and 1.6% in 2027, which doesn't keep up with inflation. This number is also inflated given the fact that $160 million for textbook costs is included in the funding increase.
Charters will receive a larger-than-inflation funding increase. Brick-and-mortar charters will receive a 4.8% increase in 2026 and a 3.7% increase in 2027 and virtual charters will increase by 14.2% in 2026 and 9% in 2027.
Traditional public schools will have limited state funding growth while losing $744 million in property tax revenue due to the effects of Senate Enrolled Act 1.
Making private school vouchers universal in 2027 by eliminating the income eligibility threshold. This means if Elon Musk lived in Indiana, his kids would qualify for private school tuition assistance, funded by taxpayers.
Decreasing the eligibility level for On My Way Pre-K from 150% of the federal poverty level to 135% of the federal poverty level. Fewer of our working families will qualify for pre-K support.
Cutting the budget for the Commission for Higher Education (CHE), reducing students’ scholarships.
Reducing funding for local public health initiatives to $80 million, a $145 million cut from the 2023 biennial budget.
Marion County has used this funding to prevent chronic disease and improve maternal and infant health.
Increasing the funding for Real Alternatives, an organization that preys on pregnant women. Real Alternatives poses as women's health clinics but in fact spreads misinformation and offers no privacy-protected medical care to women.
Putting the Indiana University Board of Trustees completely under the control of the governor by eliminating the alumni-elected trustee positions.
This was a last-minute addition that the public didn’t get to testify on, and it was not debated on the House floor.
Sneaky language was also snuck into the budget, requiring the Commission for Higher Education to review professors’ tenure every five years. The CHE can also review degree programs, recommend curriculum and even eliminate certain degrees.
Defunding Dolly Parton’s Imagination Library Program, which provides free, age-appropriate books to children from infancy to five.
Eliminating funding for the Public Broadcasting Service (PBS and NPR) TV and radio.
No funding for trails or other quality of life projects.
This budget does little to nothing for many Hoosiers. It fails to acknowledge the daily reality that many in Indiana are facing: Can I afford the things I need today? This budget fails to put food on Hoosiers’ tables. It fails to help Hoosiers afford the rising cost of health care. It fails to provide for 90% of children who choose public K-12 education, instead prioritizing private school vouchers. This budget fails to help working Hoosiers get ahead.
As always, please reach out to my office with any questions, thoughts or concerns at h96@iga.in.gov.
In service,
State Rep. Gregory W. Porter
