Porter: ‘FSSA’s heartbreaking waitlists are the result of fiscal cliffs’

Today, the Family and Social Services Administration (FSSA) announced a waitlist for the Indiana Child Care Development Fund (CCDF) voucher program, effective immediately. This waitlist will only affect new applicants since the FSSA has promised to prioritize funding for families already enrolled in the program. 

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement: 

“I’m dismayed yet another waitlist is being implemented for vital services, but I can’t say I’m surprised. The CCDF voucher program supports Hoosiers needing affordable, quality child care. We have parents who want to participate in the workforce, but they can only do so if their children are provided for during their shifts. The bottom line is families in need will be waitlisted for assistance until the next federal fiscal year. Indiana claims to be a 'State that Works,' but there’s little care for Hoosiers’ life-work balance.  

“We have 73,000 families currently in this program, and the high cost of care means it's in high demand. The FSSA plans to freeze this program’s expansion until it returns to a 'normal' base level of 50,000 families. Shooting for only 50,000 families is insanely low since federal law permits enrollment of 212,000 families. Even Indiana’s existing eligibility threshold would allow for the enrollment of 125,000 families. 

”These announcements have been par for the course lately. Medicaid is running out of federal funding, and the majority has refused to provide any supplemental state funding. Since 2020 as part of the COVID-19 response, we received $1.2 billion in one-time federal funding, some of which was used for CCDF vouchers. This is what we call a 'fiscal cliff.' We have a funding imbalance between demand and budget. The FSSA apparently awarded these slots with supplemental, one-time funding knowing it wouldn’t last.

“Hopefully, as we start a new budget cycle, we can address these fiscal cliffs that are harming Hoosier families seeking vital assistance. It’s important that the state properly funds programs that support employment and economic competition.” 

Porter comments on Braun’s misguided tax proposal

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement regarding Gov.-elect Mike Braun’s tax plan: 

“It’s clear that Braun’s tax plan was designed to provide further benefits to wealthy Hoosiers. I haven’t seen any legislative proposals, but I’m highly concerned with the plan’s contents. My major concern is the two-year state income tax credit for those bumped into higher tax brackets due to inflation, the so-called ‘Bidenflation Relief Tax Credit.’

“Braun believes federal taxes are slamming Hoosiers, and we can soften the impact with Indiana’s tax code. Frankly, this idea is misguided and fiscally unsound. In 2022, we addressed a federal change by tying state and federal fiscal tax policy together. We’re still experiencing inconsistent revenue flows from that decision. 

“It’s a dangerous game to link these two systems together. We’re comparing apples to oranges. Indiana has a flat tax rate. Everybody is taxed at 3.05% whereas the federal percentage changes based on your income level. 

“Besides, addressing inflation isn't a novel idea. Most of Hoosier’s federal taxes are already calculated with inflation in mind thanks to the 1981 Economic Recovery Tax Act (ERTA). It’s passive income streams for higher tax brackets, like stock investments, where there will be real benefits. The better option is to make the state-earned income tax credit more reflective of the federal amount. This would benefit lower to moderate-income taxpayers who don’t have passive incomes.  

“The bottom line is this proposal will divert our limited state income tax revenue to the wealthiest taxpayers. Middle- and working-class families will get no relief. Indiana’s human infrastructure needs, like childcare and K-12 public funding, will be even more strapped for cash. We should shelve this proposal from further consideration and create something that truly helps the average Hoosier.”

Porter disappointed in SALTR report, says changes are handouts to big businesses

Today (Nov. 20),  the State and Local Tax Review Task Force (SALTR) voted on their final report and recommendations. The report includes eliminating the 30% personal property tax floor and the implementation of cuts to the local income tax, which will result in $1 billion in lost revenue by 2030. 

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement: 

“This report is a nothingburger that provides no solution to rising property tax rates. In fact, Republicans will give big businesses even more handouts by changing the de minimis business personal property tax and the 30% floor on depreciable personal property. The state will lose $289 million in revenue, which will shift the burden to the very homeowners we’re trying to help. 

“By cutting the amount we receive from businesses, we’re putting more burden on property taxes to make up the difference. Local schools, EMS services and other entities will need the funding from somewhere, and it will be out of working-class families already emptied pockets. 

“This task force was established to create more effective controls for property taxes and help working Hoosiers afford their bills so they could stay in their homes. I believe these recommendations will do the opposite. I simply cannot square the circle on the disparate property tax provisions in this report. 

“A couple of the task force’s thoughts on the Local Income Tax (LIT) are well-informed. It’s prudent public policy to use GIS data for LIT distributions and to allow cities to adopt their own LIT. As for the idea of reducing the overall LIT cap to match the state income tax, I'll reserve my judgment for a later date.

”I’m disappointed in this report which provides very little relief to hard-working Hoosiers. We can do better for our homeowners, and we should do better.”

IBLC, Porter honor Marshall “Major” Taylor with Distinguished Hoosier Award

Today, members of the Indiana Black Legislative Caucus (IBLC) honored Marshall “Major” Taylor with the Distinguished Hoosier Award. Born in 1878, Taylor became the first African American world champion in cycling.

State Rep. Gregory W. Porter (D-Indianapolis) sponsored the award. Porter serves House District 96, which includes the neighborhood Taylor lived in during his time in Indiana.

“I think Indiana has a lot of unsung Black heroes who deserve to be recognized for the barriers they broke,” Porter said in a statement to Indiana Public Broadcasting earlier this month. “Taylor was only the second Black athlete to win a world championship in any sport, and he was a trailblazer in a non-traditional sport. His sprint times are still considered some of the fastest in the world. Growing up as a Black man in Indianapolis, Taylor was a testament to how far grit and willpower could take you. I am honored to posthumously present this award to Marshall 'Major' Taylor for his legendary impact on Indiana.”

State Rep. Earl Harris Jr. (D-East Chicago) spoke at the award ceremony, praising Taylor's talent and perseverance.

“Taylor's story is not just one of triumph on the racetrack, but of courage in the face of adversity,” Harris said during the event. “He competed during a time when the color of his skin meant he was often excluded from competitions, subjected to harsh discrimination and even faced with threats of violence. Yet, despite the odds, Taylor's will to succeed remained unshaken. He set more than 20 records and became an international superstar. But even more than his victories, it was his refusal to be silenced or sidelined that made him a true champion.”

IBLC, Porter honor Marshall “Major” Taylor with Distinguished Hoosier Award

Today, members of the Indiana Black Legislative Caucus (IBLC) honored Marshall “Major” Taylor with the Distinguished Hoosier Award. Born in 1878, Taylor became the first African American world champion in cycling.

State Rep. Gregory W. Porter (D-Indianapolis) sponsored the award. Porter serves House District 96, which includes the neighborhood Taylor lived in during his time in Indiana.

“I think Indiana has a lot of unsung Black heroes who deserve to be recognized for the barriers they broke,” Porter said in a statement to Indiana Public Broadcasting earlier this month. “Taylor was only the second Black athlete to win a world championship in any sport, and he was a trailblazer in a non-traditional sport. His sprint times are still considered some of the fastest in the world. Growing up as a Black man in Indianapolis, Taylor was a testament to how far grit and willpower could take you. I am honored to posthumously present this award to Marshall 'Major' Taylor for his legendary impact on Indiana.”

State Rep. Earl Harris Jr. (D-East Chicago) spoke at the award ceremony, praising Taylor's talent and perseverance.

“Taylor's story is not just one of triumph on the racetrack, but of courage in the face of adversity,” Harris said during the event. “He competed during a time when the color of his skin meant he was often excluded from competitions, subjected to harsh discrimination and even faced with threats of violence. Yet, despite the odds, Taylor's will to succeed remained unshaken. He set more than 20 records and became an international superstar. But even more than his victories, it was his refusal to be silenced or sidelined that made him a true champion.”

Part of economic development is addressing educational inequity

For decades, the ticket to success has been post-grad education. Michael Hicks, a leading economist from Ball State University, sums it up well with the phrase “education is the path to a middle-class life.” This doesn’t mean that those who head straight into the workforce can’t be successful. I’m a strong believer in choosing the path that’s best for you. However, I can’t deny that jobs requiring degrees usually offer higher pay, consistent wage growth and more security. There are other ways to achieve middle-class life, but the attainment of a college degree is the most likely path to that outcome. 

Unfortunately, Hoosier students are moving away from degrees. Indiana’s college-going rate has plummeted from 65% to only 53% since 2015. COVID-19 has exacerbated the problem, and the cost of schools is another deterrent. We’ve discussed this issue, but we’ve missed a key component: our Black students. College enrollment is dropping across the board, but the decline is more severe among students of color. The college-going rate for Black students has dropped shockingly low to 44%. There’s been some progress through the Indiana Black Legislative Caucus (IBLC) with auto-enrollment for the 21st Century Scholars Program. But more should be done, especially across the aisle, to change the tide.  

Looking at Indiana’s education landscape, it’s easy to understand why Black students forgo college. Let’s look at the most recent college equity report: only 17% of Black students received an Honors diploma, only 40% earned AP or dual credit and only 27% met early success benchmarks. To top it off, the U.S. Supreme Court ruled that affirmative action was unconstitutional. These measures encouraged minority students to apply with the promise of equitable admissions. College may not be for everyone, but Black students are clearly underserved. 

Post-grad employment opportunities are similarly dismal. The GOP majority has focused on work-based learning, but Black students are underrepresented in these programs. Registered apprenticeships are a moderately successful program with 21,768 active apprentices who make an average wage of $19.50 per hour. But Black Hoosiers only make up 8.5% of Indiana’s active apprentices. A recent report for the Fiscal Policy Committee highlighted that a “participation and achievement gap remains for African Americans and other minority populations.” Even when they do these programs, they still face inequity in the workforce. Black Hoosiers experience racial disparities in their wages, with differences as large as $2,000 after graduating from adult education or technical programs. 

It’s a Catch-22. We encourage Black students to join work programs instead of college. Then in these programs, they receive lower pay, struggle to get credentialed and struggle to find lasting employment. How do we address these disparities? How do we keep Indiana from falling further behind other states? We could start by re-examining the tax cuts given to big companies or redirecting the “embarrassment of riches” given to non-transparent development projects. Just think, if we “cut the fat” on corporate tax cuts and non-transparent incentives provided for Indiana Economic Development Corporation’s (IEDC) projects we could fully fund education. College degrees are better for economic development, especially for individual wage growth than the LEAP district. 

Let’s redirect our limited resources to human infrastructure which is undoubtedly more important to Indiana’s economic success. Let's begin by funding our universities to the national average. Let’s encourage college attendance since it’s the easiest path to the middle class. Let’s provide support to those pursuing degrees or job training by fully funding child care, transportation and educational grant programs. If we continue following our current path, Indiana will fall further behind with the most adverse effects felt by Black and other marginalized Hoosiers.

Porter comments on dismal monthly revenue report

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement regarding today’s revenue report, which is $183.7 million below forecast: 

“Unfortunately, this is another dismal revenue report that’s well below forecast. Revenue was down in August, and that trend has continued with our revenues down significantly for September. We’re now collectively $159.4 million under the total forecast for fiscal year 2025. 

“These variances in our forecasts may be due to 2023 legislation which changed the timing of payments. In some months, we have higher collections, whereas others have significantly lower payments. Time will tell whether or not the revenue missed this month will be made up over the holidays.

“Even if we do recoup our losses, there’s no denying that we won’t have much wiggle room in 2025. Short-sighted budgetary decisions in the past, like unrestrained voucher spending, diverted funding from public resources. In this next budget cycle, we must prioritize essential long-neglected human infrastructures over unneeded investments. 

“We can still fully fund Medicaid, statewide Pre-K, our public schools and provide a property tax credit with diminished revenue. The money is there: The general fund and state surplus exist to cover unexpected deficits. It all comes down to the programs we prioritize, and I will prioritize resources that truly benefit all Hoosiers.”