Gov. Braun presents 202527 biennial budget proposal
Jan 16, 2025
INDIANAPOLIS -- On Thursday, Indiana Gov. Mike Braun presented the 2025-27 biennial budget proposal to the State Budget Committee, a budget that includes increased funding for law enforcement, universal choice scholarships and increased funding for K-12 schools.
According to a news release from Braun's office, the budget emphasizes Braun's vision for a leaner, more efficient government that "puts Hoosier families first." The budget prioritizes tax relief, public safety and education, the release said, while "ensuring fiscal responsibility and efficiency."
"This budget streamlines government operations while focusing on areas that matter most to Hoosiers—education, tax relief, and public safety," Braun said in the release. "I look forward to working with the legislature to make this proposal a reality and ensure Indiana’s continued success."
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Some of the highlights of the proposed budget include:
K-12 education
Universal choice scholarships for all families
Increased funding for K-12 schools
A 2% increase in tuition support each year
Tax relief
Elimination of the tip tax
Phased-out tax on retirement income
New sales tax holidays
Public safety
Increased funding for:
School Safety
Law enforcement
State police
Major investment in the Indiana National Guard
Fiscal integrity
Increase the FY26 rainy-day fund by $400 million
Slow the growth of government expenses
Put Indiana in a strong fiscal position for the future
In a statement from Indiana State Rep. Jeff Thompson, a Republican from Lizton and the chair of the House Ways and Means Committee, he said that House Republicans share Braun's goals of providing tax relief while investing in education, infrastructure and other services.
"With Medicaid expenditures currently growing at an unsustainable rate, we must carefully balance our investments with maintaining responsible reserves and avoiding future budget deficits," Thompson said. "We look forward to working with the new administration and our Senate counterparts to achieve these results."
Indiana State Rep. Gregory Porter, a Democrat from Indianapolis, said that there are a couple of things within the budget that House Democrats support. But for a majority of the budget, Porter said that he cannot "and will not support."
"By ‘doing more with less,’ spending will be cut for programs Hoosiers desperately need," Porter said. "...“Under this budget, Indiana will continue to be among the worst states for quality of life. We will continue to prioritize tax cuts for the wealthy over the needs of the middle and working class. It doesn’t matter if we live in a low-tax state if you can’t afford a house or find a job to be taxed on."
Indiana State Rep. Ed DeLaney, a Democrat from Indianapolis, also echoed similar sentiments, stressing that the budget focuses "on the wrong things."
"The bottom line is that we don't bother to look at the full chessboard because we are distracted by the most current problem," DeLaney said in the release. "We must focus more on getting poorer families higher incomes, and less on better-off families having tax savings. This budget does not do that."