About 300 people packed into a Saturday town hall meeting in Gary with state Democratic lawmakers to voice concerns over bills impacting Medicaid spending, property tax reforms, education and other topics including guns.
Past legislative town halls in Gary rarely attracted more than 50 people, but this one drew residents concerned over recent national actions by President Donald Trump’s administration and state GOP proposals to trim spending and eliminate diversity programs.
“I’ve sponsored many town hall meetings and never seen a crowd like we have today,” said state Rep. Vernon Smith who’s served in the House since 1990.
The line to enter the Savannah Hall auditorium stretched down a corridor at Indiana University Northwest as residents came to hear Smith, state Sen. Mark Spencer, D-Gary; D-Gary, state Rep. Ragen Hatcher, D-Gary, and state Rep. Earl Harris Jr., D-East Chicago.
Residents found out their elected Democrats could do little to slow the GOP agenda that rolled through the first half of the General Assembly, which ends April 29. Republicans hold wide margins of control in the House and Senate and have Trump backer and former U.S. senator Mike Braun in the governor’s office.
Gary resident Robin Rich, a member of the Northwest Indiana Interfaith Action Network, said the group is worried Senate Bill 2, aimed at reducing Medicaid spending, would roll back progress made two years ago when mental health spending was expanded.
Rich said the state saved $49 million in services when it improved mental health care.
“We’re really scared Senate Bill 2 will set that back and end that progress. We were shocked to learn one out of every three people in Lake County rely on Medicaid.”
Rich asked the lawmakers to hold a press conference to emphasize the need to curtail the cuts in Senate Bill 2.
“With 30,000 people being cut, a lot of people are going to die. I don’t think people realize how dangerous this is. We have a rainy day fund, and it’s a rainy day,” she said.
However, the state’s budget surplus has shrunk as Medicaid spending increased. In 2022, the surplus was more than $6 billion. Today, it’s about $2.5 billion and GOP lawmakers aren’t inclined to dip into it.
Last year, they learned the Medicaid budget shortfall would be about $1 billion, much higher than anticipated. State Medicaid director Cora Steinmetz resigned after her erroneous lower shortfall prediction.
In the 2024 fiscal year, Indiana spent more than $19 billion on Medicaid. The federal government, however, covered 70% of the expense.
The House budget in Washington that passed last week slashes federal Medicaid spending and one estimate showed about 366,000 Hoosiers would be left without health insurance.
Hatcher told Rich to keep up the opposition to state spending cuts.
“If we have 20 or 30 people out there waiting to speak, they don’t like bad press,” she said.
Other speakers voiced concerns about topics related to federal actions and were referred to U.S Rep. Frank Mrvan, D-1st. He’s holding a virtual town hall meeting at 5:30 p.m. Wednesday. Attendees can view it live or later at youtube.com/@RepMrvan. Citizens can submit advance questions at: https://mrvan.house.gov/contact/town-forums.
The audience also heard from Gary Mayor Eddie Melton who talked about bills impacting Gary.
Melton, a former state senator, acknowledged the lopsided dynamics, but said he talks regularly with Senate GOP leaders “and they are committed to help the city of Gary. We do have some allies and friends downstate,” he said.
Melton said there’s been improvement in a House bill aimed at correcting a state comptroller error that transferred $12.2 million in gaming revenue to Gary that should have gone to the cities of East Chicago and Michigan City.
Under a “hold harmless” agreement, the funding should have gone to them because their Lake Michigan casino boats lost money after legislation allowed Gary to secure a land-based $300 million casino in 2021.
The amended bill eases the burden on Gary by directing the state comptroller to pre-pay East Chicago and Michigan City a portion of the money Gary eventually will return over a longer period.
“The bill is at a decent place now to take the burden off,” Melton said.
Melton criticized an addition to the House budget that takes three appointments away from the Gary mayor for the Gary/Chicago International Airport Authority. It gives those board seats to Crown Point, Michigan City, and the Northern Indiana Commuter Transportation District.
“That was a cowardly move,” Melton said of the anonymous budget insertion.
“Not to author a bill and to own it…. This is our airport. We’re paying the bills. I’ve talked to the mayor of Chicago and made him aware. I believe it’s because of the progress we’ve made…”
Gary public school advocate and attorney Tracy Coleman said she would like to see the Gary School Board receive the same concern as Melton voiced for the airport appointees.
She said Braun and state secretary of education Katie Jenner have three appointments on the five-member board.
Coleman asked lawmakers to write bills supporting funding for improvements at the West Side Leadership Academy such as a pool.
“We live in Gary and we can’t have a say,” she said.
Smith, a Gary educator, said convincing the GOP majority to help Gary must be an ongoing process that doesn’t end with the session.
“We’ve got to fight and work it. We can offer it, but if they don’t have the sensitivity for it, it won’t go anywhere,” he said.
Lawmakers offered an overview of first half bills covering the gamut from an Illinois secession bill to voucher spending on private schools.
Lawmakers returned Monday for the second half of the session.
Braun’s budget proposal leans into property tax cuts at the expense of public schools and municipalities and he wants increased spending on vouchers for private schools.
About 90% of Hoosier students attend traditional public schools, many of which rely on voter referendums to raise property taxes.
Harris said Braun and Republicans have increased state voucher support to make nearly every family eligible.
“It’s really become a tax break for people already sending kids to private schools,” he said of the program originally intended to help low-income families.
Carole Carlson is a freelance reporter for the Post-Tribune.
