Ways and Means Committee Takes Up Braun's Budget
HB 1001 / Chamber Supports in Part
This week, the House Ways and Means Committee held a nearly six-hour hearing on House Bill 1001, Gov. Mike Braun’s proposed budget for the next two years. The $54 billion, 122-page budget drew testimony from more than 90 witnesses, covering topics such as education funding, school choice, economic development and healthcare funding. Next week, the committee will begin markup ahead of the February 17 deadline for bills to advance to the full House.
The Chamber expressed support for key provisions in the budget while advocating for strategic investments that benefit the business community. House Bill 1001 proposes a Hoosier Workforce Upskill Program, allocating $15 million in grants to help employers offset training costs – an important tool for workforce development. Additionally, the Chamber continues to push for level or increased funding for the Manufacturing Readiness Grant program, which supports small- and mid-sized businesses investing in advanced technology. The last budget allocated $20 million per year for these grants.
Another Chamber priority is maintaining at least $10 million in funding for the Direct Flights program, which supports nonstop air travel to key domestic and international destinations. The recent addition of a nonstop flight to Dublin, Ireland underscores the program’s value in expanding global connectivity for Hoosiers and the business community.
Finally, the Chamber remains committed to advocating for a minimum $2 per pack increase in the cigarette tax, which has been unchanged since 2007. Indiana’s low tax rate contributes to higher smoking rates and associated health issues, impacting workforce productivity. Raising the tax would be a critical step toward improving public health and sustaining economic growth.
Chamber-Supported Education, Workforce Bills Advance
HB 1002, HB 1498, HB 1500, HB 1634 and SB 448 / Chamber Supports
Several Chamber-backed education and workforce development measures moved forward this week. The House passed the first phase of a multi-year K-12 school regulatory reform effort in House Bill 1002, as well as House Bill 1498, to move the implementation of a new school accountability and A through F performance ratings to be released by the end of 2026.
This week, the House Education Committee also passed Chamber-backed House Bill 1634, authored by Rep. Jake Teshka (R-North Liberty), to provide for early assessment, intervention and expanded teacher preparation in mathematics, where less than half of Indiana students test as "proficient."
The Chamber also testified in support of House Bill 1500, authored by Rep. Robert Behning (R-Indianapolis), to significantly rework the state’s teacher appreciation grant program to provide grants for bonus or supplemental pay for teachers in high-needs subjects and geographic areas, as well as for high performers. The Chamber strongly supports differentiated pay models for teachers, both to address teacher shortages and for demonstrated instruction success, to support the recruitment and retention of teaching talent throughout the state.
In the Senate, Chamber-supported Senate Bill 448, authored by Sen. Greg Goode (R-Terre Haute), would require the development of a plan to develop market-driven, stackable credentials and qualifications in training programs and support the alignment of postsecondary training and education. The bill passed the Senate Education and Career Development Committee and has been recommitted to Senate Finance because of the fiscal impact.
Addressing Innovation Development, Entrepreneurship and Trade
SB 494 / Chamber Supports in Part | HB 1172 and SB 516 / Chamber Supports | HB 1103 / Chamber Opposes
Several bills with economic ramifications were heard this week in their respective committees.
Senate Bill 494 introduces new qualification requirements for an Innovation Development District (IDD), like the Indiana Economic Development Corporation's (IEDC) tool to attract massive capital investment projects. The bill was held in the Appropriations Committee, but the chairman and bill’s author, Sen. Ryan Mishler (R-Mishawaka), stated that the language would be amended into another bill.
The Chamber supports improvements to the IDD program, including state cooperation with local units and greater transparency. However, some provisions in the bill may result in restrictions that could chill the establishment and benefits of the program.
Senate Bill 516, authored by Sen. Brian Buchanan (R-Lebanon), is the Senate version of House Bill 1172, which would establish a state Office of Entrepreneurship and Innovation.
The Chamber testified in support of SB 516, which was heard in committee on Thursday, echoing the points we made in last week’s legislative update supporting HB 1172, authored by Rep. Jake Teshka (R-North Liberty). In short, establishing a tangible "front door" for entrepreneurs will streamline the many different steps an entrepreneur must take when launching a business and help young businesses grow and prosper in Indiana.
In related news, HB 1172 was passed out of the Ways and Means Committee on Thursday (22-1), which means it's eligible for passage by the full House next week.
House Bill 1103, authored by first-term member Rep. Matt Commons (R-Williamsport), precludes any state agency – including the IEDC – from establishing a trade office in a country that is a foreign adversary (such countries include China, Venezuela, Cuba, Iran, North Korea and Russia).
The Chamber is opposed to the Legislature dictating when and where the Governor may establish trade relationships. Regardless, the bill was passed unanimously out of committee this week. No representative from Governor Braun’s administration testified during the hearing.
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