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By Caryl Auslander ● October 3, 2022

Local, state, and federal highlights in this week's memo include:

• Indiana Summer Study Committees Meet Ahead of 2023 Session
• Indiana Lawmakers Discuss 2023 Budget
• Indiana Receives Federal Approval for EV Program
• 5 Indiana Counties Will See Increase in Income Tax
• Indiana Court Rejects AG’s Request on State’s Abortion Ban
• Indiana Governor Heads to Europe on Economic Development Trip
• Will Indiana See iGaming in the Near Future?
• IDOC Commissioner Steps Down
• Indiana’s Maternal Mortality Rate Highest in 3 Years
• Indiana Lawyer Files Lawsuit on Biden’s Student Loan Forgiveness Plan
• Indiana Receives Federal Approval for Teacher Apprenticeship Program
• Congress’ Packed Agenda
• Important Dates

Indiana Summer Study Committees Meet Ahead of 2023 Session

The Indiana General Assembly’s interim committees have a robust list of topics to discuss this summer. Lawmakers from these committees use their discussions to inform bills that could be authored in the upcoming legislative session, which begins in January.

Here is what was covered last week:

Interim Study Committee on Roads and Transportation

• Inflation and system-updates are causing an increasing in funding requests from the Indiana Department of Transportation (INDOT) and Bureau of Motor Vehicles (BMV).
• INDOT may be nearly $158 million over budget between July 2021 and September 2022 due to inflation.
• The final draft report for the committee included a document that analyzed the issue of driving cards for undocumented immigrants in addition to BMV funding requests. (Indiana Capital Chronicle)

Indiana Lawmakers Discuss 2023 Budget

What’s new: Several Indiana Democrats and Republicans participated on a recent budget panel that reflected on different approaches to Indiana’s next two-year spending plan — from saving and paying down debt to one-time vs. ongoing investments. 

Why it matters: While Indiana’s revenues continue to outperform budget projections, inflation has had a significant impact on several of the state’s largest agencies, and many stakeholders are mindful of ongoing economic concerns.

• The state’s savings account held over $6 billion earlier this year before a summer special session sent $1 billion to Hoosiers for an automatic taxpayer refund.

Members of the panel had varying views on how to approach spending:

• Senator Aaron Freeman (R-Indianapolis) voiced concerns about the reserves. “When you look at the $429 million in Medicaid reserves, $644 million in tuition reserve accounts, $543 million in the rainy day fund, I don’t think those numbers are astronomically high. I don’t think they’re high enough, frankly.”
• Senator Fady Qaddoura (D-Indianapolis) focused on Indiana’s poor ranking on K-12 investment, the infant mortality rate, and public health spending. “I think with $6 billion, we can probably make strategic investments.”
• Representative Mike Karickhoff (R-Kokomo) acknowledged how some agencies have seen an influx in costs due to inflation. “We’re going to see our budget grow pretty substantially and it’s going to be a budget that grows just to take care of the fundamentals.” (Indiana Capital Chronicle)

Indiana Receives Federal Approval for EV Program

What’s new: Last week, the Federal Highway Administration approved Indiana’s plan for building out a statewide electric vehicle infrastructure network.

The details: The proposal, submitted by INDOT in July, details how the state plans to use $100 million in funding from the 2021 Bipartisan Infrastructure Law to install about 100 EV fast-charging stations along interstates and U.S. highways over the next three years.

What they’re saying:

• “A robust network of convenient, reliable charging infrastructure is essential to addressing range anxiety for electric vehicle owners,” INDOT Commissioner Mike Smith said in a media release. “Through the NEVI program, Indiana will work with private and public partners to make strategic investments in charging infrastructure along our highways to support the growing number of EV’s traveling throughout our state.”

What’s next: Now that Indiana’s National Electric Vehicle Infrastructure (NEVI) plan has been approved, the state can begin the process of working with private and public partners to create a reliable charging network. (IBJ)

5 Indiana Counties Will See Increase in Income Tax

What’s new: The Indiana Department of Revenue says individual income tax rates will increase in five Hoosier counties beginning next month. The rates are determined by county officials and submitted to the DOR for review.

By the numbers: The DOR says the new tax rates affect businesses with employees who live and work in any of the affected counties and have income tax withholdings.

• Boone County: 0.017 (increased from 0.015)
• Johnson County: 0.014 (increased from 0.012)
• Knox County: 0.017 (increased from 0.012)
• LaPorte County: 0.0145 (increased from 0.0095)
• Monroe County: 0.02035 (increased from 0.01345)

Go deeper: You can find the current rates for all Indiana counties from the DOR by clicking here

(Inside INdiana Business)

Indiana Court Rejects AG’s Request on State’s Abortion Ban

What’s new: Last week, the Indiana Court of Appeals rejected Attorney General Todd Rokita’s request for an expedited response on Indiana’s abortion ban. The decision to reject that Rokita’s request was signed by Appellate Court Judge Cale Bradford. Three other judges concurred. (Indiana Public Media)

Indiana Governor Heads to Europe on Economic Development Trip

What’s new: On Sunday, Governor Eric Holcomb left for his third economic development trip to Switzerland and Germany.

Why it matters: Holcomb says the trip will ultimately benefit you with job possibilities as more European companies having a stake in Indiana’s economy. His office says 117,600 jobs in Indiana are supported by 535 European companies, and these trips help strengthen existing relationships and establish new ones.

What they’re saying:

• Holcomb released a statement saying, “As we think about the future of energy and industrial growth domestically, we must always keep in mind how far away global events effect our shared and connected economies. For example, the war in Ukraine has had serious repercussions that have rippled across all of Europe and Asia and I’m particularly looking forward to discussions with our German partners about how we can assist and lead our way through these times of great industry change.”

The agenda:

• Monday and Tuesday the group will meet with existing partners in Germany, on German Unity Day. They’ll take part in a roundtable with the American Chamber of Commerce in Germany on global energy transition and joint strategies for accelerating renewable resources. They’ll also meet with 138 German companies with facilities in the Hoosier State.
• Wednesday they go to Switzerland, where the group meets with Dormakaba, a security company with a 200,000 sq. ft. facility in Indianapolis.
• Thursday, still in Switzerland, they meet with Medartis, which hosts its U.S. headquarters in Warsaw; and Roche, the parent company of Roche Diagnostics North America headquartered in Indianapolis. (WIBC)

Will Indiana See iGaming in the Near Future?

What’s new: According to a report released by the Indiana Gaming Commission on Tuesday, introducing iGaming in Indiana would be “a relatively smooth process,” and would bring hundreds of millions in tax revenue to the state.

The details: The study says Indiana stands to earn between $341 million and $943 million in taxes off iGaming over three years, depending on the rate adopted, according to consultant Spectrum Gaming Group, which conducted the study on the state’s behalf.

What they’re saying:

• “There’s a viable iGaming market in Indiana that is untapped,” said Matt Bell, president and CEO of the Casino Association of Indiana. “… Indiana can act to move into that space without cannibalizing business from its brick and mortar casinos.”

Yes, but: There is some concern, though, that authorizing iGaming could negatively impact revenues at existing Indiana casinos. The state earned $700 million in taxes off its 12 casinos in the most recent fiscal year, according to another Indiana Gaming Commission annual report released earlier this month.

The big question: Who would be allowed to offer iGaming, and how will it be taxed?

What’s next: The report explores additional regulatory details, like operator licensing fees, occupational licensing, new game certification, anti-money laundering measures and customer identification verification. (Inside INdiana Business)

IDOC Commissioner Steps Down

What’s new: After almost six years in leadership, Indiana Department of Corrections (IDOC) Commissioner, Rob Carter, has announced he will step down in his role and will be succeeded by Christina Reagle.

What they’re saying:

• “It has been an honor to implement many of Gov. Holcomb’s initiatives, including focusing on increasing vocational training for incarcerated individuals and reducing recidivism to an all-time low,” Carter said in a statement. “I leave behind an agency and leaders poised to continue focusing on providing a safe environment that fosters training and preparation for life after incarceration.”
• “Christina has demonstrated that she understands the constant collaboration needed for success and has a deep understanding of the staff development, investment in technology and program development and planning that is needed for the success at IDOC,” Governor Eric Holcomb said in a statement. “I look forward to her leadership.”

What’s next:

• Carter’s last day will be Oct. 14, after which he will assume a role with Taft Stettinius & Hollister LLP Public Affairs Strategies Group.
• Reagle, the agency’s deputy commission of administration and finance, will serve as the new commissioner effective Oct. 17. (Indiana Capital Chronicle)

Indiana’s Maternal Mortality Rate Highest in 3 Years

What’s new: Indiana’s third annual report by the Indiana Maternal Mortality Review Committee was released and reported its highest pregnancy-associated death rate yet, with 117.1 maternal deaths per 100,000 live births in 2020.

Why it matters: Of the 92 deaths, 79% (73 deaths) were considered preventable. The report cited prenatal care as a crucial factor to ensuring that women have a healthy and safe pregnancy and childbirth experience.

By the numbers:

• 50% of the women who died in 2020 accessed prenatal care during the first trimester.
• 15.2% received no prenatal care at all.
• For all live births, 69.3% of mothers accessed care, meaning inadequate prenatal care could be a contributing factor to maternal mortality in Indiana. 
• Sixty-nine (75%) of the women who died had Medicaid coverage at the time of the death, higher than the 63.3% average across the three years analyzed. 

What they’re saying:

• “Prenatal care is crucial to ensure that women have a healthy and safe pregnancy and childbirth experience,” the report said. “By connecting with a prenatal care provider, pregnant women can monitor their health and become informed of steps they can take to protect their infant and themselves. Additionally, early prenatal care can identify high-risk pregnancies that may require a higher level of care.”
• “The (committee) determined an overwhelming majority of the pregnancy-associated deaths from 2020 were preventable and provided recommendations toward eliminating these. As the committee continues its work into the 2021 cohort, it is imperative that Indiana learns from these findings and looks for actionable steps to improve the health of Hoosiers,” the report concluded.

What’s next: Recommendations were given from the report and include: publicly funded childcare beginning at infancy, comprehensive sex education, universal access for long-acting reversible contraception, expanded Medicaid coverage and better access to public transportation/ vehicles modified for medical needs.

Indiana lawmakers will have a chance to address these recommendations during the 2023 budget session. (Indiana Capital Chronicle)

Indiana Lawyer Files Lawsuit on Biden’s Student Loan Forgiveness Plan

What’s new: An Indiana lawyer has filed a lawsuit to block President Joe Biden’s student loan forgiveness plan on the basis that he would be forced to pay state taxes on the canceled debt. It’s one of the first significant legal challenges to Biden’s plan.

The details: The federal lawsuit was filed Tuesday in the U.S. District Court for the Southern District of Indiana by Frank Garrison, who lives in the state.

• “Nothing about loan cancellation is lawful or appropriate,” the lawsuit says. “In an end-run around Congress, the (Biden) administration threatens to enact a profound and transformational policy that will have untold economic impacts. The administration’s lawless action should be stopped immediately.”
• Garrison has said he is already pursuing federal student debt relief through the Public Service Loan Forgiveness Program (PSLF)
• Because the Hoosier state is set to be one of a handful of states in the country to tax debt canceled under Biden’s plan, Garrison says he will face a state tax liability of more than $1,000 for 2022.

When asked about the lawsuit at Tuesday’s White House briefing, press secretary Karine Jean-Pierre said that anyone who doesn’t want student debt relief will be able to opt out. (Indiana Capital Chronicle)

Indiana Receives Federal Approval for Teacher Apprenticeship Program

What’s new: The Indiana Department of Education announced Thursday that the state’s first registered training program focused on teachers has received US Department of Labor approval.

The details:

• The state says the program, which begins as a pilot in Hamilton County, will provide high school students with a pathway to teaching and is the first of its kind in the country to focus on special education.
• The program initially starts at Noblesville High School. Students can enroll at the beginning of their junior year, and trainees receive tuition from Ball State while still in high school through dual enrollment courses.
• During courses, trainees work at the Boys and Girls Club of Noblesville to gain hands-on experience while being paid.
• During the course of the program, trainees earn several educational certifications.

What they’re saying:

• “This tremendous and first-ever Indiana apprenticeship initiative will develop an apprenticeship pipeline for today and tomorrow,” Indiana Higher Education Commissioner Chris Lowery said in written comments. “It’s a clear win for future educators to begin their education in high school, gain hands-on experience in the classroom, and earn a bachelor’s degree at the end of five years of education.” (Local Today)

Congress’ Packed Agenda

What’s new: With Congress expecting to head back to their home-states for the upcoming midterm elections, members are preparing for a busy agenda for the last two months of business.

Why it matters: The prospect of Republicans winning one or both chambers of Congress threatens to leave Democrats with a short runway to pass bills codifying marriage equality, banning lawmakers from trading stocks and preventing a Jan. 6 redux.

The issues Congress is expected to tackle include:

• The budget: The most pressing matter members will have to deal with is hammering out an annual budget — or passing another stopgap bill — to avert a shutdown and ensure the government stays funded through the holidays.
• Marriage equality: A House-passed bill to codify the right to same-sex and interracial marriage was expected to go to a Senate vote this month, but Schumer punted it until after the election.
• Jan. 6: The Senate is set to take up a bill to reform the Electoral Count Act of 1887 to make it harder to decertify presidential electors, clarify the vice president's role in the certification process as ceremonial, and minimize opportunities to send Congress competing electoral slates.
• Congressional stock trading: House Democrats' bill to curtail stock trading by members of Congress will be kicked until after the election amid uncertainty about whether the Democratic votes are there.
• Judges: President Biden has 44 nominees for the federal judiciary awaiting Senate confirmation, a task that could take on heightened urgency if Republicans win the Senate. There are 83 vacancies to fill in total. (Axios)

Important Dates

• Monday, October 3rd at 11am - Interim Study Committee on Financial Institutions
• Tuesday, October 4th at 10:30 am - Interim Study Committee on Courts and Criminal Code
• Tuesday, October 4th at 12pm - Interim Study Committee on Public Health, Behavioral Health, and Human Services
• Wednesday, October 5th at 10am - Interim Study Committee on Government
• Wednesday, October 5th at 1pm - Interim Study Committee on Child Services
• Monday, October 17th at 1pm - Interim Study Committee on Pension Management Oversight
• Wednesday, October 19th at 10am - 21st Century Energy Policy Development Task Force
• Thursday, October 20th at 10am - Housing Task Force
• Thursday, October 20th at 12pm - Interim Study Committee on Public Health, Behavioral Health, and Human Services
• Thursday, October 27th at 10am - Housing Task Force