3/10 Torchbearer Weekly Policy Update
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- Mike Braun's vision: Reshaping Indiana's government
- Gov. Braun's executive order strategy: Leading with decisive action
- Child care costs surpass college tuition in 38 states
- February's jobs report: Solid gains amid federal layoffs
- State revenues continue to exceed projections
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- Important Dates
Mike Braun's vision: Reshaping Indiana's government
Republican Mike Braun entered the Governor’s Office in January with a strategic vision to transform Indiana's state government into a more business-savvy organization.
Why it matters: Braun's approach prioritizes the efficient use of taxpayer dollars and addresses what he describes as overspending.
- He has reorganized over 60 state entities into nine policy verticals, each led by cabinet secretaries and Lt. Gov. Micah Beckwith.
- Secretary positions, many of which are new, offer salaries of $275,000 each.
Key appointments: Braun selected leaders with both business and government experience, many from former Gov. Eric Holcomb’s administration.
- Several department heads transitioned into the Braun administration, including State Health Commissioner Lindsay Weaver and Higher Education Commissioner Chris Lowery.
- Former state lawmakers like Mike Speedy and Matthew Ubelhor have been appointed to strategic roles.
What's next: This initiative aims to streamline government functions and improve service delivery while managing costs effectively. (Indianapolis Business Journal)
Gov. Braun's executive order strategy: Leading with decisive action
Gov. Mike Braun has issued 36 executive orders by March 5, surpassing his predecessor Eric Holcomb's first-year total of 32 orders.
Why it matters: Braun's executive orders reflect a proactive leadership style, emphasizing both practical policy changes and political alignment.
- Key initiatives include mandating a return to a five-day workweek for state employees, expanding paid parental leave, and enhancing healthcare price transparency.
- Orders also signal alignment with national political trends, such as immigration policies and banning "modern gender ideology" in state government.
Child care costs surpass college tuition in 38 states
The Economic Policy Institute (EPI) reports that child care costs now exceed college tuition in 38 states and D.C., highlighting a growing financial burden on families.
Why it matters: The rising cost of child care represents a significant challenge for working families, particularly low-wage workers, and outpaces rent in 17 states.
- Indiana lawmakers attempted to ease costs by reducing regulations but have resisted direct subsidies or tax credits.
- Child care is increasingly unaffordable, with EPI advocating for federal and state action to alleviate the financial strain.
Case study - New Mexico: The state exemplifies the burden, with annual infant care costs surpassing $14,000, exceeding rent by over 10%.
- New Mexico voters approved a constitutional amendment for early childhood education, creating a $150 million fund to support these programs.
What's next: Advocates call for universal preschool to provide affordable child care, urging nationwide investments to follow New Mexico's example. (Indiana Capital Chronicle)
February's jobs report: Solid gains amid federal layoffs
The labor market added 151,000 jobs in February, despite significant federal worker layoffs, with the unemployment rate slightly rising to 4.1%.
Why it matters: The resilience in job growth indicates underlying economic strength, but federal layoffs and uncertainties, like tariffs, may challenge progress.
- Federal payrolls lost 10,000 jobs, coinciding with U.S. DOGE Service cuts and executive order impacts.
- Health care led job gains with 52,000 positions, while manufacturing and financial services also saw growth.
Economic outlook: Economists warn that ongoing policy changes, including tariffs and federal grant freezes, could dampen consumer confidence and hiring.
- February saw the largest drop in consumer spending since 2021, emphasizing existing economic pressures.
What's next: As policies evolve, sectors reliant on federal contracts and imports may face job cuts, while industries less dependent on imports could see expansion, shaping the labor market's future dynamics. (Washington Post)
State revenues continue to exceed projections
What’s new: For the third consecutive month, Indiana’s revenue collections have exceeded the most recent projections.
By the numbers: The Indiana State Budget Agency said Friday that General Fund revenues in February totaled more than $1.3 billion, which was $94 million higher than the December 2024 forecast, or 7.8%. Last month’s collections were also 17.9% higher than the same month in 2024.
Of note: The agency noted that higher-than-expected collections from income tax revenues outweighed lower-than-expected collections from sales tax and interest revenues.
Corporate tax collections, riverboat wagering collections, and racino wagering collections also surpassed projections for February.
The bottom line: Year-to-date, General Fund revenues have totaled $13.4 billion, which is $150 million above the December 2024 forecast and 1% higher than the same period in the previous fiscal year.
You can connect to the full February 2025 revenue report by clicking here. (Inside Indiana Business)
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Important Dates:
Thursday, April 10th - House and Senate Committee Report Deadline
Monday, April 14th - House and Senate Second Reading Deadline
Tuesday, April 15th - House and Senate Third Reading Deadline
April 16th - April 24th - Conference Committees
Thursday, April 24th - Anticipated Sine Die
Tuesday, April 29th - Sine Die