9/9 Torchbearer Weekly Policy Update
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- ‘A Signal’: Indiana Maintains Top Credit Rating
- “No Tax on Tips” For These Jobs
- Hogsett’s 2026 City Budget Includes $10 Million for Homelessness
- Braun Names Next Top Utility Customer Advocate, Tees Up Regulator Overhaul
- More Opposition Announced for Proposed Google Data Center in Franklin Township
- Weak Summer Labor Market Growth Flashes Warning Signs for the Economy
- Indiana Slashing Rates for Child Care Providers
- Hoosiers Voice Concerns Over Potential Election Law Changes at Indianapolis Hearing
- Indiana Officials Embark on Japan Trade Mission
- READI Regions Provide ‘Sound Foundation’ for Indiana’s Regional Policy, Study Says
- Braun Appoints New Public Safety Secretary in Latest of Several Leadership Changes
- Chronic Absenteeism Rate in Indiana Schools Drops Again
- Share the Torchbearer Newsletter with Your Network!
- Important Dates
“No ‘A Signal’: Indiana Maintains Top Credit Rating
Indiana has once again achieved the highest possible AAA credit rating from the three major credit-rating agencies, as announced by Gov. Mike Braun.
Why it matters: This rating signals that Indiana is well-managed, fiscally responsible, and positioned for growth, benefiting taxpayers and businesses alike.
- The AAA rating allows for borrowing at lower interest rates, saving taxpayer dollars.
- It strengthens Indiana’s ability to invest in infrastructure, education, and public services.
The big picture: Only 14 states have this top mark from agencies like S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings.
- Indiana has consistently held this rating since 2010.
What they're saying: "The AAA rating is the gold standard," said Indiana Secretary of Management and Budget Lisa Hershman.
- It enhances Indiana's competitive edge in attracting new business and expanding economic opportunity statewide. (Indiana Capital Chronicle)
“No Tax on Tips” For These Jobs
The Treasury Department gave Mike a first look at the list of 68 jobs that qualify for a new tax deduction under the "no tax on tips" pledge in President Trump's "big, beautiful bill."
- Why it matters: Until now, the administration hadn't specified the eligible occupations. There's good news on the list for everyone from golf caddies and party DJs to home electricians.
Treasury Secretary Scott Bessent, who made a Labor Day swing through three Washington-area restaurants to promote the tipping provision, told Axios the list of covered occupations is "expansive but fair."
- "For workers, $20 here and $20 there can make a big difference," Bessent said during an interview at McLean Family Restaurant in suburban Virginia.
Here are the categories and some of the jobs:
1. 🥤 Beverage and food service
- Bartenders, wait staff, cooks, and fast-food workers.
2. 🎤 Entertainment and events
- Gambling staff, dancers, musicians, and coatroom attendants.
3. 🛎 Hospitality and guest services
- Bellhops, concierges, desk clerks, and hotel maids.
4. 🧑🔧 Home Services
- Home maintenance workers, landscapers, electricians, plumbers, and cleaners.
5. 🦮 Personal services
- Planners, photographers, or officiants for private events; tutors, babysitters, nannies, and pet caretakers.
6. 💈 Personal appearance and wellness
- Massage therapists, hairdressers, manicurists, tattoo artists, exercise trainers, and tailors.
7. ⛳ Recreation and instruction
- Golf caddies, tour guides, and sports instructors.
8. 🚕 Transportation and delivery
- Taxi, rideshare or bus drivers; delivery people, home movers, and vehicle cleaners.
Hogsett’s 2026 City Budget Includes $10 Million for Homelessness
Next year's city budget could include $10 million to help house the thousands of residents without a home.
Why it matters: The city's homeless population rose in 2025 for the second year in a row, according to the annual point-in-time count.
Driving the news: The City-County Council will hold a public hearing on Mayor Joe Hogsett's budget proposal, including the $10 million for homelessness initiatives, later this month and vote on it in October.
State of play: Hogsett's budget continues homelessness initiatives started in previous years and expands some, including the master leasing program that matches empty apartments with unhoused individuals, who sublet the units from a nonprofit that holds the lease.
- It also funds the tenant advocacy project, which provides free legal assistance to tenants facing eviction and the Vacant to Vibrant program, which turns vacant or blighted properties into affordable housing.
Zoom in: The Streets to Home Indy program, also covered in Hogsett's budget, is what the city has been using to relocate individuals who had been camping near Fountain Square.
- That encampment was slated for closure after neighbors complained, but the city took it more slowly than originally expected finding placements for campers.
What we're watching: The city was expected to break ground on a new low-barrier shelter last year, but that's been pushed back to later this year.
What's next: The City-County Council's public hearing is scheduled for 7pm Sept. 22. (Axios)
Braun Names Next Top Utility Customer Advocate, Tees Up Regulator Overhaul
Indiana Gov. Mike Braun has appointed Abby Gray to lead the Office of Utility Consumer Counselor, aiming to cut utility bills and increase scrutiny on utility rate increases.
Why it matters: Hoosiers have faced repeated utility rate hikes, and Braun's administration wants to ease this burden by focusing on affordability and supply.
- Two IURC members plan to resign, providing Braun with opportunities to appoint new commissioners aligned with his vision.
- The administration seeks to hold utility companies accountable while advocating for ratepayers.
What's next: Braun has directed Gray to explore cost-saving measures and evaluate utility profits.
- New IURC appointees will focus on scrutinizing rate cases and prioritizing consumer interests over utility profits.
- Legislative efforts are expected as lawmakers like Rep. Alex Burton prepare bills aimed at reducing utility bills.
Between the lines: Despite support for Braun's actions, some lawmakers warn that recent laws still favor utility companies, potentially limiting relief for consumers. (Indiana Capital Chronicle)
More Opposition Announced for Proposed Google Data Center in Franklin Township
A growing number of Indianapolis City-County Council members, now 16, have voiced opposition to a proposed Google data center in Franklin Township.
Why it matters: Concerns have been raised about potential impacts on electricity rates and water usage, with AES Indiana already proposing rate increases.
- Council Vice President Ali Brown and District 4 Councilor Nick Roberts are among the latest to express opposition.
What they're saying: "I just don’t think this project is what we need right now in Indianapolis," said Roberts, citing community feedback and the limited job creation of just 50 permanent positions.
- Roberts acknowledged the importance of the tech sector but emphasized the need for projects better aligned with community needs.
The big picture: This project would be the first Google data center within Indianapolis city limits, amidst plans for at least 20 data centers across Indiana.
- Google is also constructing another data center in Fort Wayne. (WIBC)
Weak Summer Labor Market Growth Flashes Warning Signs for the Economy
The U.S. labor market contracted in June for the first time since the pandemic, with employers pulling back on hiring due to economic headwinds from Trump administration policies.
Why it matters: The weakening job market presents challenges for job seekers and may influence Federal Reserve decisions on interest rates.
- The unemployment rate rose to 4.3%, the highest since late 2021, indicating potential economic instability.
By the numbers: The economy added only 22,000 jobs in August, far below expectations, while July job gains were revised upward to 79,000.
- Layoffs surged to 86,000 in August, a 39% increase from July.
Between the lines: Analysts caution that while payroll softness may not signal immediate recession, the labor market remains vulnerable to downturns.
- Federal government payrolls and tariff-sensitive industries show stagnation, potentially hindering economic growth.
The labor market's precarious state underscores the need for strategic action to stabilize employment levels and foster economic growth. (Washington Post)
Indiana Slashing Rates for Child Care Providers
The Indiana Family and Social Services Administration has announced a reduction in reimbursement rates for child care providers, ranging from 10% to 35%, to address a $225 million funding gap.
Why it matters: The cuts could lead providers to drop out of the program, impacting low-income families who rely on the Child Care Development Fund (CCDF) vouchers.
- The decision was made to protect children and families depending on these vouchers by maintaining the number of families served.
The big picture: Currently, 55,000 children benefit from the vouchers, which peaked at 68,000 during the pandemic.
- Former Gov. Eric Holcomb's use of federal COVID-19 funds raised rates and expanded eligibility, which has now led to financial strain as those funds are no longer available.
What's next: The new rates take effect on October 5, with payments starting November 6.
- The state aims to align rates with federal regulations, ensuring sustainability.
- However, this has also led to a waiting list for applicants, criticized as a "moral failure" by some lawmakers.
Be smart: The cuts come as the legislature allocated $147 million for the fiscal year to maintain eligibility criteria, with the program expecting to cost $400 million by fiscal year 2027. (Indiana Capital Chronicle)
Hoosiers Voice Concerns Over Potential Election Law Changes at Indianapolis Hearing
Concerns about election integrity, constitutionality, and ballot length were voiced at a public hearing in Indianapolis regarding potential changes to Indiana's voting system.
Why it matters: The proposals could shift municipal elections to even-numbered years and expand vote centers statewide, impacting voter convenience and election costs.
- Secretary of State Diego Morales hosted the hearing to gather public input and ensure elections remain secure and accessible.
The big picture: Voter turnout in municipal elections is significantly lower than in state and federal races.
- Data shows only about 27% participation in 2023's municipal elections compared to 42% in the 2022 midterms.
What they're saying: Some attendees support vote centers for their convenience, while others worry they might limit access in small towns.
- Concerns over ballot fatigue and potential constitutional issues were also raised, with some arguing that local control should be prioritized.
What's next: The secretary of state will compile feedback and present recommendations to the General Assembly by November 1. (Indiana Capital Chronicle)
Indiana Officials Embark on Japan Trade Mission
A delegation of Indiana’s economic, political, and trade experts embarked on a trade mission to Japan.
Why it matters: Strengthening ties with Japanese companies is crucial for Indiana's economic growth and innovation.
- The delegation includes mayors from Columbus, Greensburg, Seymour, Vincennes, and Wabash, reflecting the state's commitment to fostering international relations.
What's happening: The group will attend the Midwest US-Japan Conference and the World Expo in Japan, focusing on economic growth and innovation.
- Chris Pfaff, CEO of Knox County Indiana Economic Development, emphasized the importance of face-to-face meetings to highlight Indiana’s strengths and explore new partnership opportunities.
By the numbers: Over 300 Japan-related companies operate in Indiana, employing nearly 70,000 people.
- The delegation aims to build on this foundation by engaging Japanese business leaders and exploring further growth opportunities. (Inside Indiana Business)
READI Regions Provide ‘Sound Foundation’ for Indiana’s Regional Policy, Study Says
Gov. Mike Braun’s office announced the validation of Indiana’s 15 READI regions by an independent study conducted by the Indiana Business Research Center and the Indiana University Kelley School of Business.
Why it matters: The validation confirms the strength and readiness of these regions to lead economic and workforce development efforts in Indiana.
- The READI program, initially funded with $500 million, aims to streamline regional planning and economic growth, offering a unified framework for the state.
The big picture: Executive Order 25-45 aims to establish a unified regional framework, removing confusion and cutting costs by aligning the state around the READI regions.
- The study found that these regions align with real labor markets and demonstrate effective collaboration among local leaders.
What they're saying: "These regions provide a socially efficient and empirically sound foundation for Indiana’s regional policy," said Phil Powell, IBRC Executive Director.
- Indiana Secretary of Commerce David Adams highlighted the focus on strategy, empowering regions to grow population, wages, and opportunities.
The READI framework offers Indiana a durable structure to deliver economic and workforce development, fostering trust and collaboration among local leaders. (IBJ)
Braun Appoints New Public Safety Secretary in Latest of Several Leadership Changes
Gov. Mike Braun has appointed Anthony Scott as the new Secretary of Public Safety, following Jennifer-Ruth Green's resignation.
Why it matters: This change marks the third high-level resignation in Braun's administration, raising questions about stability and continuity in leadership.
- The public safety secretary plays a crucial role in overseeing law enforcement, emergency preparedness, and policy development, impacting the safety of Hoosiers.
The backdrop: Jennifer-Ruth Green, a combat veteran, was appointed to the position last December but is now leaving for military duty.
- Anthony Scott, currently the Indiana State Police Superintendent, will take on dual roles, bringing extensive experience to the position.
What's next: Gov. Braun is expected to announce further personnel updates and efficiency measures this week.
- The administration is focused on maintaining safety and operational efficiency across state agencies.
The bottom line: These leadership changes within the Indiana government highlight a period of transition and potential reform in public safety management. (IBJ)
Chronic Absenteeism Rate in Indiana Schools Drops Again
Chronic absenteeism among Indiana students has decreased for the third consecutive year, according to the state Department of Education.
Why it matters: Regular attendance is crucial for mastering literacy and numeracy skills, which are essential for students' future success.
- The absenteeism rate has dropped 4.4 percentage points since the pandemic peak in 2022.
By the numbers: The state's chronic absenteeism rate is now 16.7%, down from 21.1% in 2022.
- Black students saw a 1.6 percentage point improvement, while Hispanic students improved by 1.2 percentage points.
- Students receiving free or reduced-price meals improved by 1.7 percentage points.
What's next: New laws require schools to engage with parents of habitually truant students and may involve county prosecutors for elementary cases.
- Gov. Mike Braun has increased oversight on middle and high school absenteeism.
The bottom line: While progress is evident, chronic absenteeism remains highest in high school, particularly among seniors, highlighting the need for continued efforts to address this issue. (Inside Indiana Business)
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Important Dates:
State Board of Education Meeting: Tuesday, September 10th at 9:00 am
Interim Study Committee on Agriculture and Natural Resources: Thursday, September 11th at 1:00 pm
Interim Study Committee on Roads and Transportation: Monday, September 22nd at 10:00 am
Interim Study Committee on Courts and the Judiciary: Tuesday, September 23rd at 1:00 pm
Interim Study Committee on Pension Management Oversight: Wednesday, September 24 at 9:00 am
Interim Study Committee on Energy, Utilities, and Telecommunications: Wednesday, September 24th at 1:30 pm
Interim Study Committee on Public Health, Behavioral Health, & Human Services: Thursday, September 25 at 1:00 pm
Interim Study Committee on Environmental Affairs: Wednesday, October 8 at 11:00 am
Interim Study Committee on Fiscal Policy: Friday, October 10th at 1:00 pm
State Board of Education Meeting: Wednesday, October 15th at 9:00 am
Interim Study Committee on Public Health, Behavioral Health, & Human Services: Wednesday, October 15 at 1:00 pm
Organization Day: Tuesday, November 18th