Indiana faces $2.4 billion budget shortfall according to updated revenue forecast

Yahoo

17-04-2025

​INDIANAPOLIS— According to Indiana's latest revenue forecast, state lawmakers now have a $2.4 billion budget shortfall on their hands with less than two weeks to go before the legislative session concludes.
'Everything's on the table,' said State Sen. Ryan Mishler (R-Mishawaka), the Senate appropriations chairman. 'I'm not being sarcastic…In the 21 years I've been here, and I was here during the recession in '08 and [the] '09 budget—this one scares me a lot more than that.'
'I talked to the most senior economic guy around this building, and he's never seen anything like this,' said State Rep. Ed DeLaney (D-Indianapolis).
Mishler acknowledged Republicans had already started talking about potential cuts in anticipation of the forecast, but added that those cuts will be bigger than what they had expected.
'We're going to have to make tough decisions, we're going to have make some cuts, and if anybody has the audacity to come and ask us for more money, more than likely just take them out,' Mishler said.
'Maybe everything is on the chopping block except I want to say education…With the tariffs and other issues out there in the federal government right now, this really affects our bottom line,' said State Rep. Gregory Porter (D-Indianapolis). 'When the U.S. gets a cold, Indiana's got pneumonia.'
Indiana Democrats introduced dozens of budget bill amendments earlier this session that could create/strengthen revenue streams—options some of those lawmakers now hope will be taken into consideration by their colleagues across the aisle.
'We think we can weather this storm to a certain degree,' Porter said. 'We feel as the Democrats on the House side as we go through the budget process…the process is attainable.'
One of those proposals includes a cigarette tax increase that could add $800 million to the budget.
'We've been fooling around for years about a cigarette tax. Way overdue,' DeLaney said.
'We have several options—revenue resource options that we can offer in the next eight days to fully fund Medicaid, fully fund public education,' said State Sen. Fady Qaddoura (D-Indianapolis). 'The Senate Democrats will be very proactive in working with our Republican colleagues because, as I said, this is not a Republican versus a Democrat issue. This is a state budget that impacts every Hoosier, and our goal is to get it done before the end of session.'
Republican leadership said they're confident a solution will be finalized before the end of session. By law, the General Assembly has until April 29 to wrap up any unfinished business this session.
'We just got to have long nights,' Mishler said. 'I mean, that's what we do, we've done it for years, and we'll be here, and probably be staying here most of the weekend, too.'
'That remains to be seen,' said State Sen. David Niezgodski (D-South Bend) said when asked whether lawmakers could feasibly find a solution in two weeks. 'If we all have collaboration, it is not, the picture is not as bad as it seems or could be.'
'I think we can get something done in a week that's at least an honest start towards solving the problem, and if we don't, shame on us,' DeLaney said.
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