The Indiana House passed the biennial budget, which received praise from Republicans and criticism from Democrats, on Thursday.
The legislature is tasked with crafting a budget to cover state funding over the next two years. Lawmakers will determine how to spend $44 billion for schools, health insurance programs and infrastructure and health care insurance programs among other state-funded departments and programs.
House Bill 1001 — authored by Rep. Jeff Thompson, R-Lizton — was passed in a 66-27 vote, with all Democrats present voting against the budget.
The Republican supermajority has focused this session on property tax reform, which Democratic lawmakers have raised concerns about for the fiscal impact on schools and county and municipal governments.
For education, $9.4 billion in 2026 and $9.6 billion in 2027 will go toward tuition support, while $212 million for local schools, $1.7 billion for higher education, $409 million for state student assistance, and $121 million for education administration is projected for both years. For teacher retirement, approximately $1.1 billion will be allocated in both years.
The Office of Medicaid Policy and Planning will receive approximately $5 billion in 2026 and approximately $5.4 billion in 2027. Mental health and addictions will receive $350 million and family resources will receive $151 million for both years.
The Department of Child Services will receive $1.1 billion, public health will receive approximately $141 million, and aging services will receive approximately $57 million both years.
In the general government fund, approximately $998 million will be allocated in 2026 and approximately $977 million will be allocated in 2027.
Corrections will see approximately $1.1 billion for both years, while public safety will see approximately $419 million in 2026 and $413 million in 2027.
Conservation and Environment will receive $114 million and economic development will be funded by $183 million for both years.
The House discussed the bill Wednesday, with Democratic members proposing many amendments for additional funding to various programs.
Rep. Ed DeLaney, D-Indianapolis, filed an amendment to create a homebuyer-linked deposit program. Rep. Sheila Klinker, D-Lafayette, filed an amendment to increase teacher pay from $40,000 to $60,000. Rep. Mike Andrade, D-Munster, filed an amendment to allocate $100,000 for gun safety locks.
Rep. Gregory Porter, D-Indianapolis, presented a 22-page amendment that would add $4 million in funding for Dolly Parton’s Imagination Library Program, as well as establish a juvenile behavioral health competitive pilot program; commissions on race and gender fairness, and women; and a doula program, among many other things.
Former Gov. Eric Holcomb earmarked $6 million for the past two years for the country legend’s reading program, which requires a 50% local match, but HB1001 eliminates the funding. Holcomb touted the program’s dedication to helping children succeed by developing early reading skills.
In 85 counties, Indiana children receive a free book — such as Ezra Jack Keats’ “The Snowy Day” and “The Little Engine That Could” by Watty Piper — each month from Imagination Library until they turn 5. An estimated 2 million children participate worldwide, according to the Imagination Library website.
“I am hopeful that we can work with Governor Braun and the Indiana Legislature to restore the State’s funding match for local Imagination Library programs across Indiana,” said The Dollywood Foundation President Jeff Conyers in an emailed statement. “Dolly Parton’s Imagination Library and local program partners formed a partnership with the State of Indiana two years ago, and we are all doing our part to get Imagination Library books into the hands of over 60,000 Hoosier children. Indiana’s legislative session is currently underway, so Governor Braun and Indiana Legislators have the opportunity to reaffirm their commitment to the partnership by restoring funding for this program that children and families benefit greatly from. I know that Indiana leaders understand the importance of investing in young children in their state, and we are seeking to reestablish that support with key leaders now.”
All Democratic amendments failed.
Thompson put forth an amendment to add $120,000 in funding for Stop the Bleed Program and $250,000 for Columbus Learning Center Operations Support with a few technical corrections. The amendment passed.
Ahead of Thursday’s vote, Thompson said the one word for the budget is “opportunity.”
“It’s opportunity for parents to make the choice for the best place for their children to attend school. It’s the opportunity for Hoosiers to live in a state with an extremely bright future. It’s opportunity for Hoosiers to be in a state that has a structurally balanced budget with healthy reserves,” Thompson said.
Porter said he couldn’t “in good conscience” support the budget because it doesn’t address the needs of Hoosiers.
“We gotta drill down on this budget,” Porter said, holding a drill. “From our perspective, as the people’s budget has been proposed, it’s not sound because so many essential areas that are the building blocks for this community are inadequate.”
Medicaid is not fully funded, Porter said, and many health programs throughout the state are not funded.
The budget doesn’t fund K-12 education enough, Porter said, and with Senate Bill 1 — the property tax reform bill — heading to the House, funding for public education will be further slashed.
“Being able to look at this holistically, we have to continue to drill down with this proposed budget,” Porter said.
Rep. Phil GiaQuinta, D-Fort Wayne, said the budget leaves public schools behind while expanding voucher programs. The budget doesn’t adequately address teacher pay, doesn’t support first-time homebuyers or fill the childcare gap.
“The budget is the most important bill we will pass as a legislative body. It speaks volumes about what we value as a state,” GiaQuinta said. “I am voting against the budget today because I do not believe it is the best path we can set our state on.”
Rep. Cherrish Pryor, D-Indianapolis, said the budget planning process was “a missed opportunity” to support Hoosiers
“We could’ve done more,” Pryor said. “We are in uncharted waters. We do not know what the federal government is going to do. We see a lot of things happening at the federal level, a lot of cuts that are happening. Based on what we’ve seen so far, what I do know is that the state is going to have to step up to help Hoosiers.”
Rep. Jack Jordan, R-Bremen, said the federal government has been slashing funding, which he supports. But, that means the state has to be prepared to take on more fiscal responsibility.
“I’m thankful for our fiscal restraint in this budget and how we’ve ensured that we use our taxpayer money wisely,” Jordan said.
The bill moves forward to the Senate.
akukulka@post-trib.com
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