Latest news with #Qaddoura
Yahoo
21-04-2025
- Business
- Yahoo
‘Sin tax' looms over Indiana budget as legislators face shortfall of more than $2 billion
Increasing 'sin taxes' loomed over the Indiana budget as it was discussed in conference committee Monday, but one of the budget architects reiterated the increase was 'on the table' along with increasing other revenue streams. House Bill 1001, the biennium state budget, was discussed Monday because it was amended in the Senate. But the meeting was held a handful of days after the State Budget Committee received a revenue forecast, which projected a more than $2 billion shortfall for the next budget cycle. Sen. Fady Qaddoura, D-Indianapolis, asked the conference committee chairman and budget architect Jeffery Thompson if Republican leaders have decided to increase the sin taxes – cigarette, alcohol and gaming taxes – as well as delaying reductions to income taxes, management care assessment fees and school vouchers. 'Everything is on the table right now. All topics have to be discussed at this point, and we'll kind of see how it shakes out in the next 48 hours,' Thompson said. Raising cigarette taxes by $2 a pack would result in an additional $800 million over the 2-year budget, Qaddoura said. Increasing alcohol and gaming taxes would raise $250 million over the biennium, he said. Delaying reductions to income taxes to 2027 would yield $300 million, Qaddoura said. Adjusting the management care assessment fee could result in about $1 billion in savings for the state budget, he said. 'The total for these ideas, over the next biennium, is north of $3 billion. None of these ideas raise taxes on property taxes, income taxes or sales taxes,' Qaddoura said. As Republican leaders touted 'progress made' over the weekend on the budget, Qaddoura said it was done 'behind closed doors.' 'The public deserves full transparency in these decisions because there's nothing secretive about it. $2.4 billion are needed. The solutions are in front of our own eyes, and the bill is going to come before us for a vote. I don't understand why this top secret negotiation is happening behind closed doors,' Qaddoura said. Rep. Ed DeLaney, D-Indianapolis, said the state has 'under taxed' the sin taxes. 'We don't seem to want to tax sin the way we used to and the way we know how,' DeLaney said. 'We could do better on that and help our people.' Rep. Mike Andrade, D-Munster, said in addition to increasing the cigarette tax, he'd like to see the state consider a fireworks tax. In Lake County, firework sales skyrocket, especially around the Fourth of July, Andrade said. With Senate Bill 1, the property tax relief bill, now signed into law, Lake County could benefit from an additional revenue stream, Andrade said. For example, as it's likely fire departments will see a negative impact to revenues from Senate Bill 1, Andrade said the firework tax could fund fire departments. 'If you're buying fireworks and you're out there just blowing them off, you're just blowing off money. Why don't we tax it? It's not a luxury,' Andrade said. As the committee met the day after 4/20, Andrade said the legislature should consider legalizing marijuana, in some form, to create an additional taxing stream. Michigan, Illinois, Kentucky and Ohio have all legalized marijuana for medical and/or recreational use. 'I think we need to have those conversations as well, that we're losing those revenue dollars to our neighbors around our state,' Andrade said. After the legislators addressed the budget, eight people testified before the committee with suggestions or requests for future funding. Joel Hand, with the Indiana Coalition for Public Education and the American Federation for Teachers Indiana, said the state could save over $81 million in the biennium by capping the school voucher program at its current levels. 'This is an expansion of school vouchers to make it universal that we simply cannot afford, and we ask that you put a cap on that choice program effective today for the 2-year biennium,' Hand said. Tiffany Nichols, advocacy director of the Lung Association in Indiana, said the legislature should increase the cigarette tax by $2 a pack and to establish taxing parity among all tobacco products. Indiana's cigarette tax hasn't been increased since 2007, Nichols said, and it remains the lowest in the country at 99 and a half cents per pack. Research has shown that increasing tobacco prices 'is one of the most effective ways to reduce use.' A 10% price increase typically reduces cigarette consumption by 4% among adults and 7% among youth, Nichols said. 'A $2 cigarette tax increase would not only prevent thousands of Hoosiers from dying of tobacco related deaths, but also generate nearly $371 million in annual revenue that could support tobacco prevention, Medicaid and other budget shortfalls,' Nichols said. After discussion, the committee went into recess. The members did not reconvene for further discussion or a vote by presstime. akukulka@
Chicago Tribune
21-04-2025
- Business
- Chicago Tribune
‘Sin tax' looms over Indiana budget as legislators face shortfall of more than $2 billion
Increasing 'sin taxes' loomed over the Indiana budget as it was discussed in conference committee Monday, but one of the budget architects reiterated the increase was 'on the table' along with increasing other revenue streams. House Bill 1001, the biennium state budget, was discussed Monday because it was amended in the Senate. But the meeting was held a handful of days after the State Budget Committee received a revenue forecast, which projected a more than $2 billion shortfall for the next budget cycle. Sen. Fady Qaddoura, D-Indianapolis, asked the conference committee chairman and budget architect Jeffery Thompson if Republican leaders have decided to increase the sin taxes – cigarette, alcohol and gaming taxes – as well as delaying reductions to income taxes, management care assessment fees and school vouchers. 'Everything is on the table right now. All topics have to be discussed at this point, and we'll kind of see how it shakes out in the next 48 hours,' Thompson said. Raising cigarette taxes by $2 a pack would result in an additional $800 million over the 2-year budget, Qaddoura said. Increasing alcohol and gaming taxes would raise $250 million over the biennium, he said. Delaying reductions to income taxes to 2027 would yield $300 million, Qaddoura said. Adjusting the management care assessment fee could result in about $1 billion in savings for the state budget, he said. 'The total for these ideas, over the next biennium, is north of $3 billion. None of these ideas raise taxes on property taxes, income taxes or sales taxes,' Qaddoura said. As Republican leaders touted 'progress made' over the weekend on the budget, Qaddoura said it was done 'behind closed doors.' 'The public deserves full transparency in these decisions because there's nothing secretive about it. $2.4 billion are needed. The solutions are in front of our own eyes, and the bill is going to come before us for a vote. I don't understand why this top secret negotiation is happening behind closed doors,' Qaddoura said. Rep. Ed DeLaney, D-Indianapolis, said the state has 'under taxed' the sin taxes. 'We don't seem to want to tax sin the way we used to and the way we know how,' DeLaney said. 'We could do better on that and help our people.' Rep. Mike Andrade, D-Munster, said in addition to increasing the cigarette tax, he'd like to see the state consider a fireworks tax. In Lake County, firework sales skyrocket, especially around the Fourth of July, Andrade said. With Senate Bill 1, the property tax relief bill, now signed into law, Lake County could benefit from an additional revenue stream, Andrade said. For example, as it's likely fire departments will see a negative impact to revenues from Senate Bill 1, Andrade said the firework tax could fund fire departments. 'If you're buying fireworks and you're out there just blowing them off, you're just blowing off money. Why don't we tax it? It's not a luxury,' Andrade said. As the committee met the day after 4/20, Andrade said the legislature should consider legalizing marijuana, in some form, to create an additional taxing stream. Michigan, Illinois, Kentucky and Ohio have all legalized marijuana for medical and/or recreational use. 'I think we need to have those conversations as well, that we're losing those revenue dollars to our neighbors around our state,' Andrade said. After the legislators addressed the budget, eight people testified before the committee with suggestions or requests for future funding. Joel Hand, with the Indiana Coalition for Public Education and the American Federation for Teachers Indiana, said the state could save over $81 million in the biennium by capping the school voucher program at its current levels. 'This is an expansion of school vouchers to make it universal that we simply cannot afford, and we ask that you put a cap on that choice program effective today for the 2-year biennium,' Hand said. Tiffany Nichols, advocacy director of the Lung Association in Indiana, said the legislature should increase the cigarette tax by $2 a pack and to establish taxing parity among all tobacco products. Indiana's cigarette tax hasn't been increased since 2007, Nichols said, and it remains the lowest in the country at 99 and a half cents per pack. Research has shown that increasing tobacco prices 'is one of the most effective ways to reduce use.' A 10% price increase typically reduces cigarette consumption by 4% among adults and 7% among youth, Nichols said. 'A $2 cigarette tax increase would not only prevent thousands of Hoosiers from dying of tobacco related deaths, but also generate nearly $371 million in annual revenue that could support tobacco prevention, Medicaid and other budget shortfalls,' Nichols said. After discussion, the committee went into recess. The members did not reconvene for further discussion or a vote by presstime.
Chicago Tribune
17-04-2025
- Business
- Chicago Tribune
‘Sin tax' increases considered as Indiana faces $2 billion revenue forecast shortfall
Indiana's revenue forecast projected a $2 billion shortfall for the next budget cycle, according to new data presented at the State Budget Committee meeting Wednesday. The current budget cycle for the 2025 fiscal year is also short by an estimated $400 million, but the state can rely on reserves to cover the shortfall. After the meeting, budget architects Sen. Ryan Mishler, R-Mishawaka, and Rep. Jeff Thompson, R-Lizton, said 'everything is on the table' when it comes to budget cuts, according to the Indiana Capital Chronicle. Thompson said increasing 'sin taxes' — on cigarettes, alcohol and gaming — could be considered. The Indiana Chamber of Commerce President and CEO Vanessa Green Sinders issued a statement after the forecast calling on the legislature to approve a $2 per pack increase in the cigarette tax. 'We urge lawmakers to put the increase in the state budget – both for the positive impact on the health of Hoosiers who smoke and the additional revenue,' Green Sinders said in the statement. 'Indiana proudly has built one of the country's most competitive business climates. But we also must be willing to identify, discuss and act on difficult matters surrounding the health of Hoosiers — like the adult smoking rate — so we can continue to prosper as citizens and as an economy.' As House Bill 1001, the two-year state budget, was discussed in the Senate Monday, Senate Democrats proposed 60 amendments. A number of the amendments addressed the cigarette tax, including a $2 per pack raise on the cigarette tax proposed by Sen. Shelli Yoder, D-Bloomington. Mishler said Monday the legislature needs 'to keep all options open,' but called for the Senate to defeat the amendment, which it did in a voice vote. Sen. Fady Qaddoura, D-Indianapolis, proposed an amendment to increase the cigarette tax by $1 in 2026 and by $2 in 2027. Qaddoura said the state would see an additional $211 million in revenue in 2026 and more than $300 million in 2027. The amendment would designate the more than $500 million generated to fund Medicaid, Qaddoura said. The amendment failed in a voice vote. Qaddoura proposed an amendment to raise alcohol taxes that would, within two years, bring in an additional $128 million in revenue. He also proposed an amendment to increase the gaming tax that would, within two years, bring in an additional $125 million in revenue. All of the amendments failed. In total, Qaddoura said his three amendments would've brought in approximately $600 million in 2026 and approximately $750 million in 2027. Lake County Councilman Randy Niemeyer, R-Cedar Lake, said he was concerned about raising the cigarette tax because it seems that fewer people are smoking. Raising sin taxes would impact low-income and middle class families, he said. To address the budget shortfall, Niemeyer said said the state legislature should look at state departments and agencies to see where cuts could be made, similar to the Department of Government Efficiency at the federal level. 'I think they'd be surprised if they did their own form of DOGE, that they'd find quite a lot of room to restructure,' Niemeyer said. 'I think the first step is cut your government before you start taxing people.' DOGE's claims of savings have been difficult to verify as it has taken credit for axing contracts that have already ended and inflated the value of its cuts, according to a Reuters report. Porter County Councilman Jeremy Rivas, D-2nd, said the legislature should legalize marijuana to close the revenue shortfall. All the states around Indiana have legalized marijuana in some form, which has brought in revenues for the states, he said. 'It's high time they legalize marijuana,' Rivas said. 'There's got to be a lot of revenue available or other states wouldn't do it. It seems we're missing out.' Under Senate Bill 1, the property tax relief bill that was signed into law this week, the state has cut funding to local governments by 'arguing that their budgets were excessive,' said Lake County Council president Christine Cid, D-East Chicago. The only way local leaders can offset the impacts of Senate Bill 1 is to consider increasing local income taxes at the county or municipal level, Cid said. 'Ironically, this proposal comes from a party that claims to oppose tax increases,' Cid said. 'I urge the state to take a similar approach and identify savings within its own budget. People are tired of being taxed more and more.'
Yahoo
15-04-2025
- Business
- Yahoo
Senate greenlights Indiana-Illinois Boundary Adjustment Commission
The Indiana-Illinois Boundary Adjustment Commission got one step closer to becoming law on Tuesday following a Senate vote. (Getty Images) A movement to invite counties from Illinois trying to secede from their state passed the Senate on Tuesday, with the Indiana-Illinois Boundary Adjustment Commission getting a nod from 36 senators. Three Republicans joined all ten Democrats to oppose the move, debating the motion for just over 30 minutes. 'We all have our own opinions of how good things are here in Indiana, but folks from outside Indiana are eyeballing us,' said sponsor Sen. Scott Baldwin, R-Noblesville. '… we're just signaling to those Illinois counties that Indiana is open for business and we'd be happy to accept them.' 'We'd love to have you': Illinois secession bill earns Indiana House approval Thirty-three counties have passed an 'advisory referenda' signaling their desire to leave Illinois, with seven voting in the most recent November election. In a February committee meeting, some residents said they didn't feel represented by the state and, specifically, Chicago. The boundary commission would likely be a 'generational conversation,' Baldwin acknowledged, and specifics like the impact on the state's Medicaid rolls or child care shortage were yet to be ironed out. Sen. Fady Qaddoura also noted that some Indiana counties might be interested in leaving the state to join neighbors like Illinois, Michigan or Ohio, all of which have legalized marijuana for recreational use. 'Believe it or not, many of our constituents think this is a joke. They seriously think the General Assembly has more important policies to deal with, rather than sending political signals,' said Qaddoura, D-Indianapolis. 'I'm proud of Indiana. I'm proud to be a resident of Indiana. I'm a proud legislator … I want my focus to continue to be that, not sending political messages to other states.' Qaddoura's colleague, Sen. Shelli Yoder of Bloomington, went even further and called the proposal 'a political stunt.' She noted that Indiana doesn't allow for citizens to approach law-making through a referendum — which is what Illinois residents used in their succession vote. A seemingly exasperated Sen. Aaron Freeman emphasized that the bill would just approve a commission, not a final boundary agreement. 'If the fine people of eastern Illinois want to come here? Great,' said the Indianapolis Republican. 'But don't come up here and talk to me about things that have nothing to do with this bill for political purposes.' Previously, Illinois Gov. J.B. Pritzker, a Democrat, said such a move was 'not going to happen.' Due to committee amendments concerning commission membership, the House needs to accept the changes before the bill can become law. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
21-02-2025
- Politics
- Yahoo
Bill forcing schools to share property taxes with charters passes. But 40% of senators voted no
A controversial bill forcing traditional public schools to share property tax revenue with charter schools passed the Senate Thursday, splitting the chamber's Republicans after hours of contentious debate. Senate Bill 518 passed the Senate by a 28-21 vote, with 12 Republicans joining nine Democrats to vote against it over concerns that it would dilute funding for traditional public schools. The bill will now move to the House in the second half of the legislative session where it will face another round of committee hearings, amendments and votes. The somewhat narrow vote margin signals it could face an uphill battle on its way to becoming law. The Senate passed the bill on Thursday after nearly two hours of discussion that sometimes was tense. Opponents of the bill have raised alarms that public school districts across the state will be harmed by the bill, some to the tune of millions of dollars. Indianapolis Public Schools, for example, has said that it could be forced to close 20 schools and lay off staff. A fiscal analysis of the legislation predicts public schools could have to divert $10.4 million to charter schools in 2028. Sen. Fady Qaddoura, D-Indianapolis, said Republicans in the Senate have "drilled into our minds" recently that lawmakers need to be fiscally responsible due to a tight budget year. "If this body is truly about choice, then why (does) choice have to come at the expense of the choice of a million people going to traditional schools? Can choice only be accepted if it's at the expense of somebody else?" Qaddoura said. But the bill has been supported by many Indiana charter schools and school choice proponents who argue that parents who send their kids to charter schools deserve to benefit from their property tax dollars. The bill's author, Sen. Linda Rogers, R-Granger, said public tax dollars "should be following the child" regardless of whether they go to traditional public or charter schools. It's the same principle Republican leaders have preached when it comes to how to divvy state dollars for education, too. "We need to also think about the parents that are choosing to send their child to a different school, to a charter school," Rogers said. "Those tax dollars, for years, have not followed their children. Today we need to make that change." Sen. Chris Garten, R-Charlestown, added that districts like IPS shouldn't retain 100% of property tax revenue when so many kids who live in the district are choosing to attend charter schools instead. "When we talk about equity in education funding, ask yourself this, 'Is that equitable?'" Garton said. "Why do those kids matter less in the education system? Why should we fund those kids less? Because that's the system currently." Democrats in the Senate, who have just 10 seats out of 40, tried to change the bill earlier this week but all of their 18 proposed amendments failed to pass muster with Republicans. The only amendment that was approved this week was a Republican proposal to delay the bill's implementation until 2028. Still, the vote on the bill Thursday split Republicans, too. Sen. Mike Bohacek, R-Michiana Shores, said charter schools that don't provide bus service shouldn't get property tax dollars, which are supposed to, in part, fund transportation. That money should be returned to taxpayers instead, he said. "If they're not providing the service, they don't have the liability," Bohacek said. "Why are we giving them 100% of the levy if we know that half of that is for bus service?" Sen. Jean Leising, R-Oldenburg, had a different reason for opposing the bill: the one charter school in her district isn't included. The bill only applies to districts that sends 100 or more kids to charter schools. "They really don't understand why they can't be included because their students come from seven different public school (districts)," Leising said. "They cannot participate in this program." There's a philosophical difference at play in the debate. While opponents said public school districts would lose money, supporters said those districts shouldn't be getting that revenue in the first place. Sen. Shelli Yoder, D-Bloomington, said on Thursday that she was opposed to the bill because it dilutes public education funding, and public schools educate the vast majority of Indiana kids. Yoder said the state should fund charter schools in their "own right, without raiding the public property tax dollars." Rogers, on the other hand, said those traditional public schools are "receiving money for students they are not educating." Senate President Pro Tempore Rodric Bray said he wasn't surprised to see that several members of his caucus voted against the proposal. There's a lot of uncertainty right now about property taxes given the tax relief measures in Senate Bill 1, which would also impact schools, he said. "It's a contentious issue, so I didn't expect it to be 100% at all," Bray said. "We just have to make sure that what we do there is good policy but that does bring some trepidation to some of the members I think." Contact IndyStar state government and politics reporter Brittany Carloni at Follow her on Twitter/X @CarloniBrittany. Contact senior government accountability reporter Hayleigh Colombo at hcolombo@ Follow her on Twitter/X @hayleighcolombo. This article originally appeared on Indianapolis Star: Bill to share property tax money with charters passes Senate
