The budgeting process in the state legislature is never pretty. First, the governor announces his budgeting priorities, and then the House presents its version of the budget. Even with the governor and the supermajority in the legislature coming from the same party, there will always be differences in budgeting priorities.
This year, the legislature is telling the governor “no” to tax holidays and to eliminating the state income tax on tips.
Both the House and the governor’s budgets trim about 5% from agency budgets. They agree on school vouchers and halt several large-dollar funds for the Indiana Economic Development Corp.
The House budget architects echo Governor Braun’s refrain, “Do more with less.”
Even with the belt tightening, the House budget will be $500 million more in 2026 and $380 million in 2027. Most of the new spending will go to the Department of Child Services and the Department of Correction. School appropriations will increase by 2% per year.
Most of Braun’s $700 million in tax relief is not included in the House version.
Governor Mike Braun issued the following statement about the House budget:
“House Republicans have proposed a strong budget that joins me in calling for universal school choice, increasing support for public safety, and investing in rural Indiana and our workforce. I want to thank House Republicans for supporting these priorities that are key to my Freedom and Opportunity Agenda. I remain committed to tightening the belt of state government and will continue to search for more opportunities for efficiencies as we await the April forecast. I look forward to continuing to work with the legislature in identifying those efficiencies as the budget moves to the Senate.”
In the meantime, House Democrats will introduce their budget plann called, ‘A Budget for the People,’
