Indiana Legislators Pass Two Year Budget

How do human services fair?

The Indiana General Assembly passed a two year budget totaling $30 billion early Saturday morning. There were a number of tax cuts included in the budget bill, with a 5% cut in personal income tax phased in through 2017, a 1% cut to the corporate tax rate, elimination of the inheritance tax, and elimination of the death tax by January 2018. With these tax cuts, how did the programs that serve low-income Hoosiers fair?

Working Hoosiers:
•$100 million for Adult Education and Workforce Development.
•$750,000 for Career Councils to assist in job creation and matching training programs to thriving industries.
•Individual Development Accounts (IDA) maintained at $1 million.
•Funding for Regional Work Councils outlined in the House version was not included.

Work-Force Ready Graduates:
•A 3% increase in K-12 education funding over the next two years, however, this still does not make up for the cuts in funding incurred over the past 4 years.
•$6,000,000 included for dropout prevention programs.
•Increased cap for School Scholarship Tax Credits to $7,500,000.
•$20 million set aside for school safety grants.
•Included recruitment programs for minority and high need teachers, including science and math.

Healthy Hoosiers
•$250 million was set aside for potential costs associated with implementation of the Affordable Care Act, however this does not include the expansion of Medicaid.
•Removes the Savings Fund for the Healthy Indiana Plan (HIP).

Thriving Communities
•Provides a $35 million increase in funding for the Department of Child Services (DCS) to hire additional caseworkers and hotline workers.
•Provides $300,000 in funding per year for Indiana Food Banks.
•The final version did not include funding for 2-1-1 Call Centers are investment into Juvenile Detention Alternatives, both of which were including in the House proposal

To access a copy of the final budget bill, please click here.

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