11-04-2025
Senate Republicans propose more conservative budget
Senate Republicans introduced a two-year spending plan Thursday that's more conservative than the House's version.
Why it matters: Lawmakers have about two weeks left to hammer out a state budget — and they're far apart.
An upcoming revenue forecast is expected to project relatively flat growth over the biennium, and major funding uncertainty at the federal level will further complicate matters.
Driving the news: Senate Republicans rolled out a $46.8 billion budget plan with modest 2% annual bumps for K-12 schools and full funding for Medicaid — but they're keeping most other spending flat.
They also want to keep reserves above 13%, ending the biennium with $3 billion in the bank.
Sen. Ryan Mishler, R-Mishawaka, the Senate's top budget writer, said they kept so much back because the state has almost no new dollars to spend in the second year of the budget.
Between the lines: Republicans have a supermajority in both chambers so they control the budget-writing process.
The final budget will be a compromise between the House and Senate proposals, likely falling somewhere in the middle of the House's more aggressive spending plan and the Senate's more conservative one.
Zoom in: There are some major differences to be worked out.
The Senate proposal did not make the state's private school voucher program universal — a priority for House Republicans and Gov. Mike Braun that is likely to come back during conference committee.
"Obviously that's an important thing to our caucus, and it's something that we've always believed in," said House Speaker Todd Huston, R-Fishers.
Huston said he still believes it's the right year to lift the income eligibility caps on vouchers, even in a tight budget year.
Republicans matched the House's proposal for local public health funding at $100 million each year and stipulated the money may be used only for residents who are legal citizens.
Their bill does not eliminate Medicaid waitlists.
It eliminates the wait list for child care assistance vouchers but does so by reducing eligibility rather than putting more money into the program.
The other side:"They did not address the problem," said Sen. Fady Qaddoura, D-Indianapolis, who voted against the bill. "They just eliminated the problem by reducing eligibility, but we will still have families across the state who are struggling."
👀 The intrigue: Senate Republicans seemingly want to use the budget to rein in Secretary of State Diego Morales.
The bill includes a provision that requires an annual travel report for the governor, lieutenant governor and all separately elected officials.
Morales, a Republican elected in 2022, ruffled some feathers recently when he took a 10-day "economic development" trip to India (and skipped his Senate budget hearing).
The budget bill also gives the General Assembly oversight on how Morales can spend his office's dedicated funds.
What they're saying:"I think we just all need to know where they're going," Mishler said, "and if they're on state business, how they're paying for it."
What's next: An updated revenue forecast will be released Wednesday.
