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Final public testimony on state budget centers on avoiding cuts after 'bleak' revenue forecast

The northwestern exterior of the Indiana Statehouse.
Brandon Smith
/
IPB News
A recent forecast projected lawmakers will have $2 billion less in revenue in the new state budget than previously expected.

Republican budget architects said they made “a lot of progress” over the weekend crafting a state budget that takes into account $2 billion less in revenue than previously thought.

But those leaders are mum on the specifics of what that progress includes.

House fiscal leader Rep. Jeff Thompson (R-Lizton) was asked by a Democratic lawmaker whether the budget will include a cigarette tax increase, a pause in scheduled cuts to the state income tax, hikes of alcohol and gaming taxes, and universal access to private school vouchers.

On each issue, Thompson’s answer was the same.

“All things are on the table for discussion,” Thompson said.

Sen. Fady Qaddoura (D-Indianapolis) said he doesn’t understand why the negotiations are happening behind closed doors.

“And I think the public deserves full transparency in these decisions because there’s nothing secretive about it,” Qaddoura said.

Crafting the final budget bill in private is standard procedure in the legislature. Typically, the details are released publicly at least 24 hours before a final vote is taken.

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The public also got its final chance Monday to testify before lawmakers on the new state budget, HB 1001.

And after last week’s revenue forecast, most people asked legislators just to keep their funding steady.

David Bottorf represents Indiana counties. Local public health funding was already cut by $50 million a year in previous budget versions, down to $100 million a year.

Bottorf said that was a significant cut.

“In light of the current environment, be happy to take that $100 million and do what we can with that to the best of our ability,” Bottorf said.

READ MORE: An Indiana Girl Scout’s push to repeal the ‘period tax’ might be thwarted by a tight budget

Others promoted ways to increase state revenue, to help offset the need for budget cuts. Tiffany Nichols, advocacy director for the American Lung Association in Indiana, pushed for a $2 per pack increase in the cigarette tax.

She said lawmakers should also put taxes for other tobacco products at the same level as cigarettes.

“Aligning taxes on cigars, e-cigarettes and smokeless tobacco with cigarette taxes will prevent youth initiation, discourage product switching, reduce our overall tobacco use and generate additional revenue for public health,” Nichols said.

Republican budget architects said they hope to release details of a final budget within the next couple of days.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

Brandon Smith has covered the Statehouse for Indiana Public Broadcasting for more than a decade, spanning three governors and a dozen legislative sessions. He's also the host of Indiana Week in Review, a weekly political and policy discussion program seen and heard across the state. He previously worked at KBIA in Columbia, Missouri and WSPY in Plano, Illinois. His first job in radio was in another state capitol - Jefferson City, Missouri - as a reporter for three stations around the Show-Me State.