Governor's finance team presents budget proposal for next two years

The governor has four goals for the budget: to have a balanced budget, fund critical services to Hoosiers, restore and maintain prudent levels of reserves and maintain a AAA credit rating.

Posted: Jan 13, 2021 4:06 PM
Updated: Jan 13, 2021 4:17 PM

INDIANAPOLIS, Ind. (WLFI) - Governor Holcomb's finance team presented his budget proposal to the state budget committee Wednesday morning. The state legislature has to create a new budget every two years. The governor has four goals for the budget: to have a balanced budget, fund critical services to Hoosiers, restore and maintain prudent levels of reserves and maintain a AAA credit rating.

The governor's finance team is calling the state's financial situation "a pleasant surprise." The projections for Indiana's financial future last spring were much worse than what actually happened. They expect the state to be at pre-pandemic levels this year.

Half of the projected state revenue is expected to come through sales taxes. The next largest revenue source is income tax at 37.1%. Corporate tax will make up 4.7%.

Ever since the Red for Ed rally in November of 2019, public educators across state have been demanding an increase in funding from the state. Governor Holcomb has listened. According to the Indiana State Teacher's Association, he's asking for an increase of $377 million dollars in K-12 funding over the biennium. That's 49.9% of the his entire 2022-2023 general fund expenditure summary.

"Public education is half of our budget in the state of Indiana," said State Rep. Chris Campbell, (D) District 26. "No matter what, it is the most expensive thing that the state has to pay for, and it's the most important investment in our state needs to put money into."

It also restores the cuts made to higher education during the pandemic, and increases that funding by 2% over the next two years.
Purdue took the largest hit in state funding back in June, losing $3.2 million.

The pandemic has highlighted many important needs in Indiana, such as better broadband internet access in rural areas. This is something that is on Gov. Holcomb's agenda this year and is in his budget with $100 million dedicated to the cause.

Food, housing and health care insecurity are things Rep. Campbell will be looking for.

"I really want to what we are putting into Medicaid," she said. "With loss of jobs and incomes they are relying on these services to make sure that they have access to health care."

The finance team concluded on a high note. Indiana is one of 13 states that has maintained a AAA credit rating from all three major rating agencies. They said during the presentation that strong reserves, good fiscal management and low debt levels contribute to that rating.

The budget is just like any other bill that goes through the statehouse. It must be approved by both the house and the senate. Rep. Campbell expects things to be moved and changed between the governor's proposal and the final budget. News 18 will continue to follow the budget throughout the legislative session.

Lafayette
Cloudy
30° wxIcon
Hi: 33° Lo: 28°
Feels Like: 22°
Kokomo
Cloudy
28° wxIcon
Hi: 30° Lo: 28°
Feels Like: 16°
Rensselaer
Cloudy
28° wxIcon
Hi: 30° Lo: 28°
Feels Like: 21°
Lafayette
Cloudy
30° wxIcon
Hi: 31° Lo: 26°
Feels Like: 22°
Danville
Cloudy
28° wxIcon
Hi: 33° Lo: 27°
Feels Like: 20°
Frankfort
Cloudy
27° wxIcon
Hi: 32° Lo: 27°
Feels Like: 17°
Frankfort
Cloudy
27° wxIcon
Hi: 30° Lo: 27°
Feels Like: 17°
Monticello
Cloudy
27° wxIcon
Hi: 31° Lo: 29°
Feels Like: 17°
Monticello
Cloudy
27° wxIcon
Hi: 30° Lo: 29°
Feels Like: 17°
Logansport
Cloudy
28° wxIcon
Hi: 30° Lo: 28°
Feels Like: 18°
Slick spots....
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 587049

Reported Deaths: 9287
CountyCasesDeaths
Marion810691296
Lake44121665
Allen31797541
Hamilton28178303
St. Joseph26684369
Elkhart24057340
Vanderburgh18519213
Tippecanoe17305121
Johnson14398284
Porter14342159
Hendricks13793241
Madison10509212
Vigo10432171
Clark10151129
Monroe9029108
Delaware8782129
LaPorte8721153
Kosciusko784677
Howard7834137
Warrick636790
Hancock633297
Bartholomew624294
Floyd6098105
Wayne5903156
Grant5799109
Dubois541670
Boone531467
Morgan512388
Marshall492484
Henry491164
Cass469060
Noble458757
Dearborn454544
Jackson413145
Shelby401178
Lawrence379475
Clinton363639
Gibson355056
DeKalb336363
Montgomery333851
Harrison326042
Knox325439
Miami308243
Steuben304940
Adams294435
Whitley292325
Wabash291645
Ripley290845
Putnam282447
Huntington281257
Jasper280733
White265738
Daviess260772
Jefferson248538
Fayette241348
Decatur241282
Greene232460
Posey230026
Wells228547
LaGrange223461
Clay216432
Scott216437
Randolph207540
Jennings191335
Sullivan188531
Spencer179917
Fountain178625
Washington175018
Starke170741
Jay162021
Fulton158829
Owen157837
Carroll151315
Orange150533
Rush148118
Perry145327
Vermillion144333
Franklin142533
Parke12788
Tipton127332
Pike113125
Blackford107022
Pulaski94637
Newton89020
Brown85530
Benton84110
Crawford7479
Martin69213
Warren6537
Switzerland6175
Union6063
Ohio4647
Unassigned0374

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events