Porter: ‘Indiana’s revenue reports are no longer defying gravity’

Today, Dec. 17, the State Budget Committee met to discuss the final revenue forecast before the 2025 legislative session. State Rep. Gregory W. Porter (D-Indianapolis) released the following statement regarding the forecast: 

“Unlike the hit Broadway musical and blockbuster movie ‘Wicked,’ Indiana’s revenue expectations are no longer defying gravity. We’ve utilized our COVID-19 stimulus money, and we’re nearing the end of robust growth in the economy. Our revenues are resetting to relatively normal, sustained growth. 2025 looks promising since aid from the Federal Reserve will give our economy a soft landing. We’ll start to see inflation dissipate and hiring will remain strong. However, by 2026 we’ll see muted growth that will get worse in 2027. 

“Keep in mind this forecast may change dramatically in April. If the Trump administration imposes its tariffs, the Federal Reserve will slow its interest rate reductions as inflation rises. Due to the potential for change, I recommend we discuss the April forecast in March. We’ll need an extra month to assess these changes before the end of the budget session. We need to be watchful for these revenue fluctuations and prepare to modify the 2025 budget. 

“$23 billion for predicted revenue is great, but this will be tempered by human infrastructure needs. Our predicted revenue may not be enough to cover Medicaid’s needs or provide more than a 1% increase in K-12 funding. To make matters worse, Indiana is actively losing usable revenue from cuts in the state income tax. We’re losing hundreds of millions of dollars per year for cuts that may save Hoosiers $50. 

“It’s promising that our revenue is climbing, but there are storm clouds on the horizon. We need to constantly monitor our revenue, remain flexible and stay vigilant. I hope we follow through with my recommendation to discuss the April forecast a month early, so Indiana can craft the best budget possible for Hoosiers.”