12/23 Torchbearer Weekly Policy Update
Happy Holidays! Thank you for letting us be your trusted source for local, state, and federal policy updates. This will likely be our last report for 2025, but look for us in 2026 with all of your important news.
Let’s dig in…
- Indianapolis Local Education Alliance Backs Plan to Create New Authority to Oversee IPS, Charter Schools
- New Forecast Shows Big Growth in Indiana Surplus
- Inflation Cooled in November to 2.7%, but Economists Say to Take It With ‘The Entire Salt Shaker’
- Democrats Plan to Elect Maggie Lewis New President of Indy Council
- Indiana Lawmakers to Weigh Joining Trump’s Tax Cuts
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- Important Dates
Indianapolis Local Education Alliance Backs Plan to Create New Authority to Oversee IPS, Charter Schools
In a major development for Indianapolis education, a state-backed task force has recommended creating a new agency to oversee both the city school district and charter schools.
Why it matters: This proposal could reshape the educational landscape in Indianapolis, reducing the power of the IPS board while increasing charter school influence.
- The new agency would have nine members appointed by the mayor and could impose property taxes, manage buildings, and oversee transportation services.
The big picture: The proposal aligns with charter supporters‘ desires for less IPS board control, amid ongoing conflicts between traditional and charter schools.
- The GOP-run state legislature has favored charters in recent legislation, indicating potential support for the task force’s recommendations.
What’s next: State lawmakers will review these recommendations when they reconvene in January.
- Community pressure will be crucial in ensuring transparency and accountability in any new governance structure. (IBJ)
New Forecast Shows Big Growth in Indiana Surplus
Indiana’s state budget surplus could reach nearly $5 billion by mid-2027, thanks to an unexpectedly positive tax revenue forecast.
Why it matters: The surplus offers Indiana financial flexibility, sparking debates on whether to restore previous spending cuts or pursue further tax reductions.
- Republican leaders are cautious, noting the state is only a quarter into the biennial budget, while Democrats urge using the funds for vulnerable groups like children and seniors.
The big picture: The surplus is projected from tax collections growing by 4.2% this fiscal year and 2.7% next year, significantly exceeding earlier predictions.
- The cash reserves could surpass $5 billion, well above the typical 10-15% target of annual state spending.
What’s next: Lawmakers will reconvene in January to discuss these new developments.
- The debate will likely focus on balancing fiscal prudence with addressing social needs. (Indiana Capital Chronicle)
Inflation Cooled in November to 2.7%, but Economists Say to Take It With ‘The Entire Salt Shaker’
Inflation unexpectedly slowed in November, bringing a momentary relief to Americans burdened by high living costs.
Why it matters: This slowdown, dropping from 3% to 2.7%, could be misleading due to data distortions from the government shutdown.
- The shutdown significantly impacted data collection, casting doubt on the reliability of the figures.
Details: Heather Long from Navy Federal Credit Union highlights the shutdown’s effect on data, noting discrepancies in everyday expenses like groceries and utilities.
Brace for a December rebound: Economists anticipate a price bounce-back in December, with the CPI report due on January 13.
- This expected rebound suggests that the current inflation dip may be temporary. (CNN)
Democrats Plan to Elect Maggie Lewis New President of Indy Council
Democrats on the City-County Council announced plans to elect Maggie Lewis as their next president, a position she previously held from 2012 to 2017.
Why it matters: Lewis’s leadership could shape council priorities, focusing on public safety, health, and quality of life improvements.
- Democrats hold a 19-6 majority on the 25-member council, solidifying their influence.
Transition: Lewis will replace Vop Osili, who has served as president since 2018 and is considered a potential mayoral candidate for 2027.
- John Barth is set to be vice president, and Jared Evans will serve as majority leader.
What’s next: The council will officially vote on leadership roles at the January 5 meeting.
- The new leadership aims to enhance community engagement through a monthly newsletter and public meetings around the city. (IBJ)
Indiana Lawmakers to Weigh Joining Trump’s Tax Cuts
Legislators in Indiana are evaluating whether to align state tax policies with recent federal tax cuts.
Why it matters: This decision could lead to $900 million in state tax breaks over two years, impacting both businesses and individuals.
- The state must balance these potential savings with the potential loss in revenue.
Driving the news: Gov. Mike Braun’s administration projects significant savings from adopting federal deductions, like those on overtime wages and business expenses.
- The Legislature will resume its session on January 5 to address these proposals.
What they’re saying: Democratic Sen. Fady Qaddoura and others express concern about the impact on state budgets and emphasize other urgent spending priorities.
- “We have more priorities, urgent priorities that we need to tackle first before we implement any of these changes,” said Qaddoura.
The bottom line: With improved revenue forecasts, Indiana lawmakers must weigh the benefits of federal conformity against maintaining a balanced budget. (Indiana Capital Chronicle)
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Important Dates:
Important Session Dates:
January 5: Legislative Session Resumes
January 26: Committee Report Deadline (First Half)
January 28: 2nd Reading Deadline (First Half)
January 29: 3rd Reading Deadline (First Half)
February 19: Committee Report Deadline (Second Half)
February 23: 2nd Reading Deadline (Second Half)
February 24: 3rd Reading Deadline (Second Half)
February 25 through 27: Conference Committees
February 27: Anticipated Sine Die