A Summary of Indiana’s Budget Process

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As an engineer, I enjoy analyzing data and looking for innovative solutions. That is one reason I was pleased to be assigned to the House Ways and Means Committee which is tasked with reviewing our state’s finances and funding our constituents’ priorities while remaining fiscally responsible. Education, economic development and transportation infrastructure are a few of this session’s priorities, but the most important priority is to pass an honestly balanced budget without increasing taxes on hardworking Hoosiers. By continuing to live within our means, we will secure our economy for future generations.

I hold a strong core belief that the government is designed to serve the people and that the more active citizens are in their government, the better it functions.  To this end, I constantly strive to inform individuals of what their government is doing and how.  I hope this summary of Indiana’s budget process will encourage more public involvement in this version of Indiana’s biennial budget.

Crafting and passing the biennial budget typically takes the entire session and is the last bill we vote on. However, the budgetary process actually began a year ago when state agencies submitted their funding requests to the State Budget Agency. This agency is responsible for reviewing each submission to ensure that each proposal is an effective and appropriate use of taxpayer dollars. The agency then passes the reviewed requests on to the Budget Committee which is comprised of four legislators: one Democrat and one Republican from the House and Senate as well as the Budget Agency Director.

The Budget Committee compiles and considers information from public hearings, funding requests and revenue forecasts, which provide an economic outlook for the state, and creates an itemized budget proposal. The proposal then goes to the governor for review.  Once approved, the governor’s Office of Management and Budget will present the proposal to the General Assembly, which occurred last week.

At this point, House Speaker Brian Bosma will assign the proposal a bill number, traditionally House Bill 1001.  House Bill 1001 then goes to the Ways and Means Committee for review. As a member of this committee, my colleagues and I will listen to hours of testimony from state agencies, public colleges and the public on various proposed aspects of the budget. This provides us the chance to ask questions on why an agency or organization has allotted funds for specific line items. I encourage everyone to watch these committee meetings live at iga.in.gov. After receiving this testimony, we will meticulously review and potentially amend the budget bill, line by line.

Once a final version of the budget passes out of Ways and Means it goes to the House floor where every legislator then has the opportunity to offer amendments. After all amendments have been made, the budget will be voted on in its entirety and passed along to the Senate where a similar process takes place.  After both the House and Senate approve the same version of the bill, the budget becomes final.

It is a privilege to serve on Ways and Means and to ensure that taxpayer dollars are being spent in a responsible manner that best benefits Hoosiers. I will continue to work for our community, and I welcome your input throughout the coming months. Please contact my office by phone at 317-232-9671 or by email at h78@iga.in.gov with your comments and concerns on the budget bill or any other matter.