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

A recent forecast projected lawmakers will have $2 billion less in revenue in the new state budget than previously expected.
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 J. Smith has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO. Prior to that, he worked for WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.