Latest news with #StateBudgetCommittee
Yahoo
12-05-2025
- Business
- Yahoo
Should more state taxes go toward MLS stadium? $2B revenue shortfall paused those talks
Indianapolis could have secured more state tax dollars to attract a future Major League Soccer stadium and team during this legislative session, if not for the disappointing revenue forecast that projected $2 billion less in state revenue than anticipated over the next two years. There were discussions about inserting into the state budget bill language that would allow more tax dollars collected nearby to go toward construction costs of such a stadium. Once the revenue forecast hit, it no longer seemed like quite the right time to do that, and that idea was temporarily tabled, according to a person familiar with the discussions. This has little to no bearing on the future MLS prospects for the capital city ― those talks are very much alive, and there's plenty of time to make such a change ― but it's one of many consequences of the vast revenue shortfall, among other cuts. The talks also provides a clue into what greater state involvement in the quest for a state MLS team could look like, since the request could come back in the future. "The opportunity for Indianapolis to secure a Major League Soccer club remains promising," Mayor Joe Hogsett said in a statement to IndyStar. "The city is engaged in ongoing conversations with MLS and Commissioner Don Garber, and is actively working with business and civic leaders to position Indianapolis as the next MLS city, further boosting our reputation as a global sports capital." MLS prospects have been the subject of intrigue in Indianapolis since last summer, when the MLS commissioner said Indianapolis was doing "all the right things" to acquire a team. There's still no timeline on if or when the MLS plans to add another franchise or relocate a team; an ownership group has not yet gone public, though the Simon family might be involved. Adding to the intrigue this year, Commissioner Don Garber came to town in February to meet with Gov. Mike Braun. State lawmakers created the pathway to finance a new downtown sports stadium, originally with a minor league soccer stadium in mind, in 2019. The mechanism was called a Professional Sports Development Area, a taxing district that could capture new state and local sales and income taxes generated in a one-mile radius to put toward paying off the cost of building the stadium. More: Indiana lawmakers passed the state budget over night. Here are the biggest winners and losers A stipulation in that bill capped the amount of state taxes that could go toward the construction costs at $9.5 million a year. That was the cap being discussed during this legislative session, given that a major league stadium would likely cost far more than a minor league stadium. The State Budget Committee has yet to approve the financing for a potential MLS stadium. Removing the cap might have provided some more flexibility with a financing plan. But an MLS stadium is still years away from being reality, so the legislature will have more opportunities in the future to consider this proposal. A spokesperson for Sen. Ryan Mishler, R-Mishawaka, the top budget writer in the Senate, said he is "unable to comment." The House budget writer, Rep. Jeff Thompson of Lizton, did not respond to a request for comment. Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@ or follow her on X @kayla_dwyer17. Sign up for our free weekly politics newsletter,Checks & Balances, curated by IndyStar political and government reporters. This article originally appeared on Indianapolis Star: $2 billion revenue shortfall hit pause on MLS action this session
Indianapolis Star
12-05-2025
- Business
- Indianapolis Star
Should more state taxes go toward MLS stadium? $2B revenue shortfall paused those talks
Indianapolis could have secured more state tax dollars to attract a future Major League Soccer stadium and team during this legislative session, if not for the disappointing revenue forecast that projected $2 billion less in state revenue than anticipated over the next two years. There were discussions about inserting into the state budget bill language that would allow more tax dollars collected nearby to go toward construction costs of such a stadium. Once the revenue forecast hit, it no longer seemed like quite the right time to do that, and that idea was temporarily tabled, according to a person familiar with the discussions. This has little to no bearing on the future MLS prospects for the capital city ― those talks are very much alive, and there's plenty of time to make such a change ― but it's one of many consequences of the vast revenue shortfall, among other cuts. The talks also provides a clue into what greater state involvement in the quest for a state MLS team could look like, since the request could come back in the future. "The opportunity for Indianapolis to secure a Major League Soccer club remains promising," Mayor Joe Hogsett said in a statement to IndyStar. "The city is engaged in ongoing conversations with MLS and Commissioner Don Garber, and is actively working with business and civic leaders to position Indianapolis as the next MLS city, further boosting our reputation as a global sports capital." MLS prospects have been the subject of intrigue in Indianapolis since last summer, when the MLS commissioner said Indianapolis was doing "all the right things" to acquire a team. There's still no timeline on if or when the MLS plans to add another franchise or relocate a team; an ownership group has not yet gone public, though the Simon family might be involved. Adding to the intrigue this year, Commissioner Don Garber came to town in February to meet with Gov. Mike Braun. State lawmakers created the pathway to finance a new downtown sports stadium, originally with a minor league soccer stadium in mind, in 2019. The mechanism was called a Professional Sports Development Area, a taxing district that could capture new state and local sales and income taxes generated in a one-mile radius to put toward paying off the cost of building the stadium. More: Indiana lawmakers passed the state budget over night. Here are the biggest winners and losers A stipulation in that bill capped the amount of state taxes that could go toward the construction costs at $9.5 million a year. That was the cap being discussed during this legislative session, given that a major league stadium would likely cost far more than a minor league stadium. The State Budget Committee has yet to approve the financing for a potential MLS stadium. Removing the cap might have provided some more flexibility with a financing plan. But an MLS stadium is still years away from being reality, so the legislature will have more opportunities in the future to consider this proposal. A spokesperson for Sen. Ryan Mishler, R-Mishawaka, the top budget writer in the Senate, said he is "unable to comment." The House budget writer, Rep. Jeff Thompson of Lizton, did not respond to a request for comment. Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@ or follow her on X @kayla_dwyer17.
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.'
