Sen. David Niezgodski, D-South Bend, left, and Sen. Fady Qaddoura, D-Indianapolis, talk with the press at the Indiana Statehouse Wednesday after an announcement that Indiana’s projected revenue will be down by $2.37 billion.
Photo by Sydney Byerly, The Indiana Citizen.
Over the next three years, Indiana’s projected revenue will be down by $2.37 billion, according to Ben Tooley, director of fiscal policy for the Indiana House of Representatives, who shared the state’s revenue forecast during the State Budget Committee meeting on Wednesday.
Indiana will be short $403 million in 2025, $963.9 million in 2026 and more than $1 billion in 2027.
During the committee’s recess, lawmakers who were at the meeting hosted a press conference in the hallway to respond to the new revenue projections.
Sen. David Niezgodski, D-South Bend, said the revenue forecast reminded him of the economic conditions he saw during the Great Recession from 2007 to 2009.
“We’ve got serious work to do,” he said.
Sen. Fady Qaddoura, D-Indianapolis, said he and his colleagues will be working with lawmakers across the aisle to come up with solutions to the revenue shortages.
“We’re extremely concerned for Hoosiers across the state,” he said. “The same conditions that are impacting the state budget are impacting Hoosiers from across the board.”
Qaddoura said he hopes the General Assembly will decide to raise taxes on cigarettes and utilize the managed care assessment fee (MCAF), which would raise funds for Medicaid.
In a press release, Rep. Ed Delaney, D-Indianapolis, said Indiana is not prepared to be down $2.4 billion.
He told TheStatehouseFile.com he is most concerned about the impact Indiana’s projected revenue will have on public education and Medicaid, the largest spending areas in the state budget.
“There’s no plan,” Delaney said. “I think they’re just going to end up flatlining public education. We could pass a budget that pretends that we got all this money that we don’t ever have.”
Delaney said if the Republican supermajority passes a budget that can’t be fully funded, it would be dishonest.
“We could do that and leave town and say it’s Mike Braun’s problem,” he said.
Like Delaney, Rep. Gregory W. Porter, D-Indianapolis, said he was worried that public education, especially teachers and students, were on the chopping block in Indiana’s budget.
“We have to create a pipeline to education,” Porter told the gaggle of reporters at the press conference. “We also have to figure out what, how we’re gonna bring people to the state. … We don’t have a good education system.”
Alongside educators and students, Porter was also concerned about children with autism whose therapy is often funded by Medicaid.
“You should not hurt seniors, and you should not be hurting our children,” he said. “I think everyone should have a decent quality of life.”
Gov. Mike Braun, who reacted to the revenue forecast via press release, blamed Indiana’s shortage of funds on former President Joe Biden’s economic choices.
“Today’s forecast reflects what we are dealing with in the aftermath of disastrous Bidenflation. There will be some tough times ahead, but the America First economic policies we are pursuing here and in Washington will unleash an economic boom,” Braun said in a release.
“However, we must finalize a biennial budget that respects the revenue forecast and protects Hoosier taxpayers from a worst-case scenario. I will work with the General Assembly to craft a budget that is structurally balanced, maintains strong reserves, and funds vital services like public safety and education.”
Delaney also issued a press release, but he attributed the revenue shortage to an unpredictable national economy fueled by President Donald Trump’s tariffs.
“We have one week to update our budget to account for this week’s economic report. With the unpredictability coming out of D.C., I fear that the budget we pass in the next week will not hold up through the summer,” Delaney said in the release.
“The legislature must act responsibly and create a mechanism to address this economic instability. We cannot leave a matter this serious in the hands of the executive branch. My colleagues in the General Assembly need to step up to our role. Let’s be honest about this—unless we make some substantial moves in the final week of session, a lot of people are going to be hurt. Avoiding that now falls to the majority.”
Porter echoed Delaney’s concerns about federal influence in his press release that followed the budget committee meeting.
“Federal actions could completely change our trajectory. We’re one of the most intense manufacturing states in the nation, so we could get hit hard. When the U.S. gets a cold, Indiana gets pneumonia,” Porter said in the release.
“Our budget has to be done in a week. In the past, I’ve proposed doing an annual budget during periods of uncertainty. I said we needed to move this forecast up a month. Now it’s crunch time, and we’re writing this budget with a blindfold.”
Anna Cecil is a reporter for TheStatehouseFile.com, a news site powered by Franklin College journalism students.
