6/23 Torchbearer Weekly Policy Update
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- Indiana Quarterly Revenue Update - June 2025
- Bryan Bedford nominated for FAA administrator
- Pre-K teachers face unique challenges
- IU updates protest policy after court ruling
- Student loan reforms advance in Senate
- HIP 3.0 faces challenges amid federal changes
- Fed holds rates steady amid tariff concerns
- Gov. Braun to overhaul IEDC board
- Share the Torchbearer Newsletter with Your Network!
- Important Dates
Indiana Quarterly Revenue Update - June 2025
On April 16, 2025, the State of Indiana issued an updated revenue forecast that substantially reduced the expected revenues for the current Fiscal Year (FY) 2025 (July 1, 2024 – June 30, 2025), as well as the two out years, FY 2026 and FY 2027. This forecast did not indicate a net loss of revenue from FY 2024, but rather a slowing of increased revenues due primarily to current federal policy compared to what had been expected in December 2024.
The Indiana Fiscal Policy Institute put together a report regarding the update. All data and information in this analysis is from the Indiana State Budget Agency website (www.sba.in.gov). All IFPI publications available to the public are found here.
The report can be found here.
Bryan Bedford nominated for FAA administrator
Last week, Sen. Todd Young introduced Hoosier Bryan Bedford at his confirmation hearing to be the next FAA Administrator.
Why it matters: According to experts, the FAA's systems are outdated, with nearly 80% being operationally untenable long-term, risking safety and efficiency.
- The workforce, especially in safety-critical roles, is understaffed and overworked, leading to potential burnout.
- Modernizing our aviation framework is essential for maintaining safety and efficiency.
The latest: U.S. Transportation Secretary Sean Duffy has proposed a plan to upgrade the Air Traffic Control System.
- Bedford is seen as the innovative leader capable of implementing these reforms effectively.
Pre-K teachers face unique challenges
The first American Pre-K Teacher Survey reveals significant insights into the well-being, pay, and working conditions of public school–based pre-K teachers.
Why it matters: Pre-K teachers report nearly double the job-related stress compared to similar working adults, highlighting the need for attention to their work environment.
- Managing student behavior, low pay, and supporting student mental health are top stressors.
Key findings:
- 18% of pre-K teachers plan to leave their jobs by the end of the 2023–2024 school year, compared to 22% of K–12 teachers and 24% of similar working adults.
- Pre-K teachers earn nearly $7,000 less than K–12 counterparts, and about $24,000 less than similar working adults.
The bottom line: Addressing these disparities can improve retention and support for pre-K educators, ensuring a more stable early childhood education system. (Rand)
IU updates protest policy after court ruling
The Indiana University board of trustees revised their "expressive activity" policy to better align with First Amendment rights following a federal judge's ruling.
Why it matters: The previous policy, which banned overnight protests and unauthorized structures, was deemed likely unconstitutional, sparking debates on free speech on campus.
- The new policy aims to protect speech while maintaining campus order.
The latest: The trustees unanimously agreed to lift overnight protest bans, though structures still require prior approval.
- The policy update, reflecting feedback and legal insights, was swiftly implemented post-vote.
Flashback: The initial policy faced backlash after a pro-Palestinian encampment led to arrests and heightened tensions.
- The Indiana Chapter of the ACLU successfully challenged the policy, leading to its temporary suspension.
What's next: The board also discussed tuition, budget, and administrative compensation during their June 12 meeting. (Indy Star)
Student loan reforms advance in Senate
The Senate GOP has proposed a bill to overhaul student loans, moving closer to significant changes in college financial aid.
Why it matters: The "One Big Beautiful Bill Act" aims to cap student loan borrowing and cut repayment plans, impacting millions of students.
- The bill could end President Biden's SAVE program and alter repayment options for graduates.
The latest: While the Senate's proposal is less aggressive than the House's version, it still proposes major changes like reducing the number of repayment plans to two.
- The bill also limits loans for graduate students and parents, with some compromises noted.
What's next: The proposed changes could drive students to riskier private loans if enacted, potentially affecting college affordability and access.
- New accountability rules could strip federal aid from programs that don't demonstrate value in graduate earnings. (USA Today)
HIP 3.0 faces challenges amid federal changes
Mitch Roob, Indiana's FSSA Secretary, plans significant changes to the Healthy Indiana Plan (HIP) amidst federal legislative uncertainty.
Why it matters: Ongoing negotiations in Washington, D.C. could drastically alter HIP 3.0, affecting over 712,000 Hoosiers who rely on it for health coverage.
- Proposed federal changes could lead to increased state financial obligations, complicating Indiana's ability to maintain current levels of coverage.
Key points:
- The proposed "Big, Beautiful Bill" could introduce mandatory work requirements and cap provider taxes, impacting how Indiana funds HIP.
- Indiana's plan includes wellness incentives, but final details hinge on federal decisions.
The bottom line: Indiana's approach to Medicaid may need swift adaptations based on federal legislative outcomes, underscoring the need for flexibility in healthcare policy. (Indiana Capital Chronicle)
Fed holds rates steady amid tariff concerns
The Federal Reserve kept its key interest rate unchanged, anticipating more data on how tariffs will impact the economy.
Why it matters: Fed Chair Jerome Powell highlighted that tariffs could temporarily push inflation higher and slow economic growth, influencing future rate decisions.
- The Fed's decision influences borrowing costs for mortgages, auto loans, and more, impacting consumer and business finances.
The latest: Despite previous rate cuts, the Fed projects two more cuts this year, contingent on economic developments.
- Inflation is expected to rise to 3% by year-end, with unemployment slightly increasing to 4.5%.
What's next: Powell emphasized a "forward-looking" approach, with potential rate cuts not expected until at least September.
- The Fed's cautious stance reflects uncertainties around tariffs and their economic effects. (Inside Indiana Business)
Gov. Braun to overhaul IEDC board
Indiana Governor Mike Braun announced plans to completely restructure the board of the Indiana Economic Development Corp. (IEDC) amid an ongoing investigation.
Why it matters: The decision follows a probe into the activities of the IEDC and its venture capital arm, Elevate Ventures, raising concerns about governance and financial management.
- Braun aims to revitalize the board, citing its inactivity and comparing it to recent changes at Indiana University.
The latest: An audit conducted by FTI Consulting is underway, freezing state funds associated with Elevate and suspending spending by the Indiana Economic Development Foundation.
- New board appointees will be announced soon, indicating a shift toward more active governance.
Breaking: Today, Governor Braun announced newly appointed members to the board. They include:
- Gus Olympidis, Valparaiso—owner of Family Express Convenience Stores and director on several boards dedicated to regional and community development in northwest Indiana
- John Gregg, Sandborn—former speaker of the Indiana House of Representatives
- George Thomas, Granger—entrepreneur and executive, Adorn, Duo-Form, Lakota Trailers, Misty Harbor Pontoons, Viaggio Pontoon Boats
- Billie Dragoo, Indianapolis—founder and CEO of RepuCare
- David Fagan, Portage—International Union of Operating Engineers Local 150
- Greg Gibson, Terre Haute—entrepreneur in commercial real estate development, hospitality and food service industry, trucking, excavation, coal, solid waste landfill development and waste industry advisory services
- Richard Waterfield, Fort Wayne—chairman of the board and CEO, Waterfield Enterprises and Waterfield Asset Management, Founder and Managing Principal of Waterfield Private Equity Funds
- Chris King, Shelbyville—executive vice president, Runnebohm Construction, professional engineer specializing in infrastructure design and construction, and land entitlement
- Don Lamb, Lebanon—farmer and director of the Indiana State Department of Agriculture
The bottom line: This move signals a significant change in the oversight of Indiana's economic development efforts, potentially impacting future state ventures and investments. (Indianapolis Business Journal)
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Important Dates:
June 25, 2025 - 11 am - Legislative Council