The Senate kicked off the 2025 legislative session by honoring Lieutenant Governor Suzanne Crouch, who proceeded over the Senate for the last time Wednesday.
Senate President Pro Tem Rodric Bray, R-Martinsville, presented the resolution, outlining her career as Vanderburgh County Auditor, Vanderburgh County Commissioner, former state representative, state auditor and then lieutenant governor.
“She has been an ever presence for us,” Bray said. “She has led this chamber in a way that was diligent and strong.”
Crouch said she was proud of her career and accomplishments while serving in the statehouse, including expanding civic education, supporting veterans and investing $100 million in mental health.
“Every step of the way I have, like you, wanted to improve the lives of Hoosiers,” Crouch said.
Multiple senators addressed the resolution to thank Crouch for her service and outlined her accomplishments in advocating for addressing mental health and substance use disorder.
“You’ve brought meaningful change to the state,” said Sen. Shelli Yoder, D-Bloomington. “She has taught us how to be a class act.”
Sen. Dan Dernulc, R-Highland, said he met Crouch when he was a Lake County Councilman, and that he always appreciated working with her.
“You have been the epitome of grace and kindness,” Dernulc said.
Sen. Ed Charbonneau, R-Valparaiso, said when he was first elected he felt like he was “in a shell” and had a hard time speaking on the Senate floor and in small legislative groups. But, Crouch helped him gain confidence as a legislator.
“After her mentorship, and I graduated with honors, I am able to stand before you to say life is good,” Charbonneau said.
The Senate voted to approve a resolution accepting the election results for Governor-elect Mike Braun and Lieutenant Governor-elect Micah Beckwith. Braun, Beckwith and other state officials will take their oaths of office on Jan. 13 at the Hilbert Circle Theatre in Indianapolis.
Senate Republicans plan to focus on property taxes, Medicaid, healthcare costs, water resources management and contract accountability, the caucus announced in a press conference before convening to start the session.
The main task of the session, though, will be crafting a budget to cover state funding over the next two years, Bray said. The legislature will determine how to spend $44 billion for schools, health insurance programs and infrastructure, among other fiscal issues.
Like Hoosier families, Bray said, the legislature will have to tighten the budget.
“This year is going to be particularly challenging,” Bray said. “Our revenue growth, while positive, is not at the record levels that we saw in recent years. We’re also grounded with a Medicaid budget that is trying to explode and inflation that is causing the cost of just about every function of government to increase.”
To address property taxes, Sen. Travis Holdman, R-Markle, filed Senate Bill 1 to achieve property tax reform. Braun ran on a platform to reform the property tax system, Holdman said, and the legislature will work with Braun’s administrative team on the issue.
“The Senate, House and Governor-elect’s team have had a lot of discussions about this issue, and there’s no shortage of ideas and a lot to do on property taxes. That’s why we’re treating this bill like we treat the budget bill. We’re introducing the Braun proposal as the first version of Senate Bill 1, and we will give it a full vetting,” Holdman said.
Braun proposed a property tax proposal that would freeze future property tax increases by capping the increase in tax bills at 2% for seniors, low-income residents and families with children under the age of 18 and 3% for all other taxpayers.
Braun proposed overhauling the homestead deduction to allow every homeowner with an assessed value over $125,000 to deduct 60% of their home’s assessed value from their tax bill. Those with an assessed value below $125,000 would be allowed to take the standard deduction of $48,000 in addition to a 60% supplemental deduction, according to the proposal.
The proposal states the tax cut would result in a 21% reduction in the average homeowner tax bill and result in a 39% reduction in the average tax bill for homes worth $80,000.
Senate Bills 6 through 9, the text of which weren’t publicly available as of Wednesday afternoon, have property tax relief elements that the legislature should also consider, Holdman said.
Holdman said he expects Senate Bill 1 to change as legislators balance property tax reform and funding for schools and local governments.
“Our goal is to find the sweet spot,” Holdman said. “It’s a long way until Sine Die in April, but I’m optimistic that we can get something important done for the Hoosier taxpayer this session.”
The legislature is required to adjourn the 2025 session by April 29th.
Legislators are aware of a potential tax shift from property owners to income earners, but the outcry from Hoosiers about their property tax bills deserves a response from the legislature, Holdman said.
“We do know there are people who are priced out of their homes because they can’t afford to pay the property taxes that are due,’ Holdman said.
Legislators will have to reckon with maintaining Medicaid services amid an inaccurate projection by $984 million for its Medicaid expenditure forecast in April 2023. The missed projection was the result of state reversions and unanticipated growth of services for gaining and disabled residents.
Sen. Ryan Mishler, R-Mishawaka, authored Senate Bill 2 to address Medicaid cost in three parts: data cross-checking, which allows agencies to communicate about a person’s eligibility; presumptive eligibility, which states Family and Social Services Administration will limit the presumptive eligibility to qualified hospitals and set standards for presumptive eligibility; and changes to the state Healthy Indiana Plan.
The changes to the Healthy Indiana Plan include a 36-month cap for able-bodied, childless adults, Mishler said.
Mishler said the growth of Medicaid has become unsustainable as the state has had to pay $3.3 billion, $1 billion of which was a forecast error, since 2023.
“It’s just not sustainable without taking away from services and education,” Mishler said. “There’s a lot of work to be done with Medicaid, but I think this bill is a start to kind of work with the administration and get that under control.”
It’s unclear how much of a cost savings the bill would generate, Mishler said, but the bill would allow provide coverage for the most people possible.
Sen. Justin Busch, R-Fort Wayne, authored Senate Bill 3 to address health care costs through ensuring that the health insurance industry — including insurers, insurance agents, brokers, third-party administrators and pharmacy benefits managers — act in the best financial interest of their clients.
Most Hoosiers receive health insurance through their employers, who rely on the health insurers or third-party organizations to negotiate coverage networks, payment rates and claims processing, Busch said. The system could lead to the insurer prioritizing their own financial gain over what is best for the employer and employees, he said.
“Senate Bill 3 is designed to change that by requiring these middlemen to operate under a fiduciary standard employers can be confident that the coverage they secure is cost effective and truly serves the employees’ needs,” Busch said.
Sen. Eric Koch, R-Bedford, authored Senate Bill 4 to address the management of water resources by setting up a process for the Department of Natural Resources to review plans by a private sector user to move water between basins. Upon review, the department would issue a permit for the plan, he said.
Through the process, the applicant would have to file an environmental impact assessment and a feasibility study to look at alternative resources that could be used, Koch said.
In recent years, up-and-coming industries like EV battery facilities and data centers, which are dependent on a large source of water, have moved to Indiana.
“This is great thing for the future of our state, but it has also brought to the forefront the issues in how we allocate our water resources,” Koch said. “We’re trying to be thoughtful and thorough in how to go about improving these projects moving forward.”
Sen. Scott Baldwin, R-Noblesville, authored Senate Bill 5 to address contract accountability, which says any state contract over $500,000 to include performance expectations and penalties for failure to meet the expectations.
If a contractor “performs egregiously enough,” the bill would create a no-bid list of companies that can’t temporarily bid on state contracts. There would be a process for appeal, he said.
“Hoosiers deserve a responsive government so when a problem occurs we don’t ignore it, we work to fix it,” Baldwin said.
