Senate Republicans' state budget centers on fiscal responsibility and strong government oversight

STATEHOUSE (April 10, 2025) — Senate Republicans today unveiled their 2026-2027 balanced budget proposal, which reflects their commitment to fiscal responsibility, contains strong government oversight and fully funds pensions and essential government services.

Senate budget architect State Sen. Ryan Mishler (R-Mishawaka) is stressing that in this budget cycle, revenue growth is lower than in the past couple of budget cycles, which has required strong fiscal responsibility in order to produce a two-year state budget that is balanced and funds essential state government services.

"It's no secret that the growth of our Medicaid program is severely impacting our ability to invest in as many areas as we have in past budget cycles," Mishler said. "The 2025 budget is forecasted to spend $10 billion on Medicaid compared to the 2021 budget that appropriated $5 billion to Medicaid. Funding Medicaid now comes at a cost to other state-funded items. That's why getting a handle on Medicaid spending is so important and is why our caucus is prioritizing Medicaid reform with Senate Bill 2."

Senate President Pro Tem Rodric Bray (R-Martinsville) added that nearly all of the state's new dollars went to Medicaid, the Department of Child Services and the Department of Correction. However, Bray noted there are still some bright spots for Hoosiers in the Senate Republican budget proposal, including an increase for K-12 funding, a more-targeted three-tier Teacher Appreciation Grant program, funding to improve mental health, tools for economic development so we continue to invest in Indiana, and an ongoing commitment to paying down our pension obligations under the Pre-96 Teachers Retirement Fund.

"While this budget cycle isn't providing us with a lot of new revenue we can use for capital projects, what this budget cycle does allow us to do is to demonstrate to Hoosiers that we take our fiscal responsibility seriously," Bray said. "When the revenue isn't there, we aren't going to spend money we don't have, period. We want Hoosiers to know Senate Republicans are serious about tightening the belt, and that's what we have done with our budget proposal."

The Senate Republican budget proposal includes a myriad of strong government oversight provisions and efficiency steps to rein in state spending, some of which are as follows.

• Requires an annual report to the State Budget Committee from each separately elected official, the lieutenant governor, governor and members of the governor's cabinet on travel expenses and details
• Provides that all Secretary of State dedicated funds shall be appropriated by the General Assembly before they can be spent
• Allows only Indiana residents who are legal citizens of the United States to take advantage of programs offered via the Local Public Health Fund
• Cuts many budget line items by 5% and requires the State Budget Director to withhold 5% of each agency's appropriations (with exceptions)
• Directs the Office of Management and Budget to prepare a report to the Indiana Office of Technology on ways to reduce and streamline the state's technology costs
• Requires the Department of Child Services to coordinate a regional pilot program in two regions (up to four contiguous counties per region) through which the county prosecutor's office shall have the exclusive right to act as DCS legal counsel for Children in Need of Services cases

Additional information on the Indiana Senate Republican budget proposal can be found at www.IndianaSenateRepublicans.com/2025SenateRepublicanBudget.

-30-

Senate President Pro Tem Rodric Bray (R-Martinsville) represents Senate District 37, which includes Morgan County and portions of Johnson, Owen and Putnam counties.

Click here to download a high-resolution photo.

State Sen. Ryan Mishler (R-Mishawaka) represents Senate District 9, which includes portions of Elkhart, Kosciusko, Marshall and St. Joseph counties.

Click here to download a high-resolution photo.

Sen. Bray Contact: Molly Swigart, Communications Director
molly.swigart@iga.in.gov
317-232-9521

Sen. Mishler Contact: Emma Balzer, Deputy Communications Director
Emma.Balzer@iga.in.gov
317-232-7184