“All options are on the table” for the state budget as lawmakers will have $2 billion less to spend than previously expected.
The state revenue forecast unveiled Wednesday is the worst since at least the Great Recession.
National economic uncertainty is driving the sharp decline in projected tax revenue — $2.4 billion less over a three-year period than what was expected just four months ago.
Senate budget architect Sen. Ryan Mishler (R-Mishawaka) said these numbers scare him a lot more than during the Great Recession.
“Back then, if you remember, we had federal money to backfill it,” Mishler said. “We don’t have any federal money to backfill it. This is all on us.”
Lawmakers said all options are on the table, from budget cuts to increasing some taxes, like those on cigarettes or alcohol.
Rep. Greg Porter (D-Indianapolis) said K-12 education should be spared from the chopping block.
“I mean, if we don’t have a good education system, etc., people are not going to come here and live,” Porter said.
READ MORE: Senate advances $46.8 billion state budget that creates 'some angst,' will evolve further
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The Braun administration said it will work to craft a budget that protects Hoosiers from a worst-case scenario and funds “vital services like public safety and education.”
“We have already seen Governor Braun keep his fiscal discipline message on point,” said Lisa Hershman, Office of Management and Budget director. “We will continue that as we march through and figure out what’s next.”
Sen. Fady Qaddoura (D-Indianapolis) noted that Senate Democrats proposed a series of revenue-generating provisions for the budget earlier this week, all of which were rejected by Republicans.
“So, while the economic outlook looks negative, we do have solutions,” Qaddoura said. “We look forward to working with our colleagues to implement these solutions so that the working class families across the state will not be negatively impacted because of this budget.”
Fellow Democrat Sen. David Niezgodski (D-South Bend) was quick to emphasize that they’re not only calling for tax increases.
“That is not the only solution,” Niezgodski said. “That should be some of the options that we further discuss.”
Lawmakers intend to finalize the budget within the next two weeks.
Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.