INDIANAPOLIS — Governor Mike Braun and Republican leaders introduced the finalized version of the state's 2025 budget on Wednesday.
Cuts were expected as the state faces a $2.4 billion shortfall.
Public health is facing the most notable cuts. Public health will decrease to $40 million a year compared to last year's $100 million a year. This is one of the most significant cuts, according to lawmakers.
Higher education is facing a 5% cut to their operations budget as well as their replacement and renewal budget.
Lawmakers weren't able to make up the entire shortfall despite all the cuts. Included in the budget is a tax hike on tobacco products.
There were conversations about potentially freezing the gradual income tax decrease, but leadership said they will continue to give that tax relief to Hoosiers.
House Speaker Todd Huston (R-Fishers) released this statement on the updated budget plan:
"Government is doing exactly what Hoosier families have to do. We're living within our means and tightening our belts. This budget reduces government spending while funding our most critical priorities and providing continued income tax relief for Hoosiers."
