10/6/2026 Torchbearer Weekly Policy Update
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- Key Lawmakers Suggest Income Taxes Cover Homestead Property Tax Credit
- Fed’s Preferred Measure of Inflation Dips to 3.4 Percent in August
- Local Officials Knock NIPSCO Storm Outage Response
- Braun Extends Gas Tax Suspension, Will Let Farmers Use Off-Road Diesel
- Indiana Awards $418M for Broadband Projects Around the State
- Senate Reaches Bipartisan Deal on Permitting Bill to Speed Approvals of New Energy Projects
- Indiana Interstate Highway Construction Costs Soar Amid Inflation, State’s Own Ambitions
- U.S. Economy Added 29,000 Jobs in September: BLS
- Leader of Troubled Transparency Office is Out as Braun Announces New Pick
- Lawmakers Plan Legislation to Make Locked-Out Workers Automatically Eligible for Unemployment
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- Important Dates
Key Lawmakers Suggest Income Taxes Cover Homestead Property Tax Credit
About 300 Hoosiers gathered in Warsaw to discuss a proposal from lawmakers to end property taxes on owner-occupied homes.
Why it matters: Property taxes are a significant burden for homeowners, and this proposal could alleviate financial pressure while impacting local government revenue.
- The plan suggests local governments increase income taxes to offset property tax credits.
- Many local officials are concerned about potential cuts to services.
The big picture: Sen. Ryan Mishler explained that eliminating property taxes entirely isn’t feasible due to $54 billion in local debt.
- The alternative is using local income taxes for property tax credits, phased over five years.
What’s next: Another proposal considers replacing property taxes with a broader sales tax.
- Discussions will continue, with adjustments expected in the 2027 legislative session.
What they’re saying: “It’s their money. It’s their decision to make,” Mishler emphasized, pointing out the local control aspect of the proposal. (Indiana Capital Chronicle)
Fed’s Preferred Measure of Inflation Dips to 3.4 Percent in August
The Federal Reserve’s preferred inflation gauge, the PCE price index, rose 0.3% from July and 3.4% year-over-year in August, signaling a slight dip.
Why it matters: Inflation remains above the Fed’s 2% target, prompting potential interest rate hikes that could impact economic conditions.
- The Fed’s recent rate increase took the range to 3.75% - 4%.
- Further tightening may be on the horizon, as indicated by Fed officials.
The latest: Core inflation, excluding food and energy, stands at 3%.
- Cleveland Fed’s projections were higher than actual figures.
What they’re saying: Fed Chair Kevin Warsh emphasized the persistence of high inflation.
- FOMC members are considering additional rate adjustments to balance inflation and labor market risks. (The Hill)
Local Officials Knock NIPSCO Storm Outage Response
Northwest Indiana residents and officials criticized Northern Indiana Public Service Co. (NIPSCO) for their inadequate response to the severe storms on August 11.
Why it matters: Over 375,000 customers lost power, with some waiting two weeks for restoration. The lack of communication and delayed response have sparked calls for legislative changes.
Driving the news: Griffith Police Chief Albert Tharp highlighted failures in communication, including missed meetings and unrecorded outages. Residents were frustrated with the lack of updates and clarity from NIPSCO.
What’s next: NIPSCO’s President, Vince Parisi, acknowledged the issues and announced internal and external reviews. Proposed legislation includes mandatory emergency response procedures and enhanced vegetation management inspections.
The bottom line: The utility’s response has spurred demands for better staffing and public communication, with additional legislative oversight anticipated. (Indiana Capital Chronicle)
Braun Extends Gas Tax Suspension, Will Let Farmers Use Off-Road Diesel
Gov. Mike Braun has extended Indiana’s suspension of gasoline use and excise taxes until Nov. 4 to alleviate costs for residents.
Why it matters: This measure aims to save Hoosiers money at the pump amid rising fuel prices.
- The suspension has already saved residents billions, with regular gas prices in Indiana at $3.83, significantly lower than the national average.
For farmers: Braun introduces tax-exempt off-road diesel fuel to aid farmers facing high diesel costs.
- By lifting restrictions on dyed diesel, farmers will save about 64 cents per gallon.
The stakes: Diesel prices have reached record highs due to Middle East conflicts, with highway diesel averaging $6.84 per gallon in Indiana.
What’s next: Braun will review the fuel relief measures when they expire on Nov. 4, considering extensions as needed. (Indy Star)
Indiana Awards $418M for Broadband Projects Around the State
Indiana has signed contracts with 24 internet service providers to extend high-speed broadband to 122,000 homes and businesses.
Why it matters: This initiative is part of the federal Broadband Equity, Access and Deployment program, aiming to enhance connectivity across the state.
- The contracts, valued at $418 million, will bolster access to underserved and rural areas, promoting economic development.
The latest: Construction is expected to begin this fall and be completed by the end of 2030.
- An online tool, the Indiana Broadband Progress Hub, provides residents with details about the projects, including locations and expected speeds.
What’s next: Indiana plans a second round of awards using the remaining BEAD funds, but the timeline is yet to be determined.
- The state’s initial plan was delayed due to federal rule changes in 2025, impacting the project’s timeline. (IBJ)
Senate Reaches Bipartisan Deal on Permitting Bill to Speed Approvals of New Energy Projects
Senators from both parties have reached a deal on a bill aimed at speeding up permitting reviews for energy and infrastructure projects, addressing delays that can last for years.
Why it matters: The bill seeks to accommodate the rising demand for electricity due to AI data centers, ensuring these centers contribute to grid upgrades.
- It proposes significant changes to environmental laws, aiming to streamline project approval while maintaining ecological protections.
The latest: The bill has garnered bipartisan support, with hopes for approval in a lame-duck session post-midterms.
- It allows for quicker siting of interstate transmission lines and fortifies the Federal Energy Regulatory Commission’s role in expediting projects.
What’s next: While the vote is delayed until after midterms, supporters are optimistic about overcoming political hurdles.
- The bill mandates that data centers pay for their transmission costs, preventing these expenses from falling on consumers. (IBJ)
Indiana Interstate Highway Construction Costs Soar Amid Inflation, State’s Own Ambitions
Skyrocketing highway construction costs in Indiana don’t just come down to inflation, state and industry leaders say.
Why it matters: Indiana’s highway costs have increased by nearly 450% since 2015, significantly impacting budget allocations and planning.
- In the 2026 fiscal year, the state spent an average of $46 million per mile, compared to $8.4 million in 2015.
- This surge is partly due to inflation, supply chain issues, and ambitious infrastructure projects.
The big picture: Indiana is unique in its focus on building additional capacity rather than just maintaining existing infrastructure.
- This approach has led to higher costs but aims to meet growing traffic demands and economic growth.
Details: The Federal Highway Administration’s index shows a 60% cost increase due to materials like steel and concrete.
- Indiana’s strategy includes early contractor involvement and project bundling to control costs.
- The state maintains a 20-year asset management plan to mitigate long-term expenses. (Indiana Capital Chronicle)
U.S. Economy Added 29,000 Jobs in September: BLS
The U.S. economy added 29,000 jobs in September, while the unemployment rate rose slightly to 4.2%, according to the Bureau of Labor Statistics (BLS).
Why it matters: This slight uptick in unemployment raises concerns about the labor market’s resilience amid the Federal Reserve’s recent interest rate hike.
- Economic activity could be constrained more than anticipated if joblessness continues to rise.
By the numbers:
- The economy added 162,000 jobs in August, revised down from initial reports.
- The unemployment rate has remained below 5% since August 2021, following a peak of 14.8% during the early pandemic.
What’s next: The Federal Reserve’s future rate decisions will hinge on upcoming economic data, including the consumer price index (CPI) and labor market trends.
- The FOMC is expected to hold rates steady at their next meeting, pending further inflation and employment insights.
The bottom line: While inflation remains a concern, the current data suggests a cooling labor market, prompting a cautious approach from policymakers regarding further rate hikes. (The Hill)
Leader of Troubled Transparency Office is Out as Braun Announces New Pick
Indiana’s public access counselor Jennifer Ruby has been replaced by attorney Brittney Long, following a tenure marked by backlogs and communication issues.
Why it matters: The public access counselor plays a crucial role in maintaining government transparency and accountability, issuing advisory opinions on public records access and open meetings laws.
- Under Ruby, the average time to produce opinions tripled, prompting concerns over transparency.
The big picture:
- Brittney Long, previously deputy general counsel for the Indiana Department of Natural Resources, is expected to bring added transparency and accountability.
- Gov. Mike Braun emphasized Long’s legal credentials and passion for public service.
What’s next: Long’s appointment aims to clear existing backlogs and improve the office’s efficiency.
- Additional staff have been loaned to help reduce the backlog, with weekly productivity reports showing progress.
Bottom line: Long’s leadership is anticipated to enhance the transparency and responsiveness of Indiana’s public access office. (Indy Star)
Lawmakers Plan Legislation to Make Locked-Out Workers Automatically Eligible for Unemployment
Lawmakers from northwest Indiana are set to propose a bill to support workers locked out by their employers.
Why it matters: The bill aims to provide clarity and support for over 800 union workers at the BP Whiting Refinery who have been locked out since March.
- It seeks to ensure that locked-out workers can receive unemployment benefits, addressing a current “gray area.”
- Without this support, workers could lose the $310 weekly unemployment benefits they currently rely on.
The big picture: The proposed legislation has gained support from multiple state representatives and candidates.
- Democratic State Sen. Rodney Pol and Rep. Chuck Moseley are leading the effort.
What’s next: A hearing is scheduled with Indiana’s Department of Workforce Development to address BP’s appeal to deny unemployment benefits.
- Legislators aim to pass the bill in the next session to protect workers‘ rights and benefits.
What they’re saying: USW 7-1 President Eric Schultz criticized BP’s actions as detrimental to Indiana families. “Locking us out of our jobs and taking paychecks away from hundreds of local families was always part of their negotiating strategy,” he said. (Inside Indiana Business)
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Important Dates:
Important Dates:
Tuesday, October 13th at 10:00am: Agricultural Promotion and Regulation Task Force in the Senate Chamber
Wednesday, October 14th at 9:30am: ISC on Fiscal Policy in Room 404
Wednesday, October 14th at 10:00am: ISC on Education in the House Chamber
Wednesday, October 14th at 1:00pm: State Fair Advisory Committee in the Senate Chamber
Thursday, October 15th at 1:30pm: Indiana Finance Authority Meeting at One North Capitol, Suite 900
Thursday, October 22nd at 1:00pm: ISC on Pension Management Oversight in Room 404
Thursday, November 12th, 10:00am: Indiana Early Learning Advisory Committee, Muncie Location TBD
We will add interim study committee meetings as they are announced.