Porter comments on Republican initiatives to make vouchers universal

Last month, Gov.-elect Mike Braun released his 2025 policy agenda, including extending universal school choice to all families. Leadership for House Republicans has indicated their support for Braun’s agenda. Universal expansion would eliminate the income threshold for Indiana’s Choice Scholarship Program, allowing the use of taxpayer dollars for private school tuition. 

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

”In the 2023 budget, Republicans made the voucher program nearly universal. Around 97% of Hoosier families currently qualify since the limit is a family of four making $220,000 a year. We knew they wanted to eliminate the income thresholds. They want the wealthiest Hoosiers to send their kids to school with taxpayers' hard-earned dollars. 

"Millionaires don’t need to utilize a program we created for lower-income families. This program started to provide working Hoosiers with educational opportunities even if they couldn't afford it. If you make over $500,000, you can afford to pay for your child's private school tuition. They don't need this funding. They want this funding and that difference should be clear. This is essentially a $6,000 tax cut per student for multi-millionaires and technically billionaires.  

“A tenured Education Committee member has stated that the cost of expansion would be minimal, around $11 to $12 million. The real cost would be closer to $200 million: $88.6 million in 2026 and $94.7 million in 2027. These numbers equal the 1% increase we normally give to our public schools. In the budget game, this is not a minimal amount of money. 

“The opportunity cost with this funding is massive. We could triple the size of On My Way Pre-K, or we could support families in need of child care assistance. Better yet we could put that money toward solving our problem with Medicaid funding. Public money belongs in public spaces. Point blank, period.” 

Porter comments on House Bill 1136, which would transform certain public schools into charters

Last week, Indiana House Republicans filed House Bill 1136 to reorganize Indiana’s school corporations. The bill provides that if 50% or more students live outside a school district, then that district must be transformed into a charter school.  

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

”We haven’t started session yet, but when I saw this bill filed I was mystified and dismayed. The real intent behind HB 1136 is evident: to divert funds from traditional public schools. It’s to ensure charter schools get a share of IPS’ referendum funds. The majority party severely underfunds our public schools, but that’s not enough. They’re threatening the very existence of urban public schools. 

“This is a ‘bolt out of the blue’ since this is the first time any sort of transformation like this has been discussed. The dissolution of public schools has never been seriously proposed. Most of the affected schools are in Gary and Indianapolis, majority-minority communities, where we’ve seen multiple issues with charter schools. 

“Charters can dissolve at any time, leaving their students out in the cold. Without fail, many charter schools dissolve each year at random points of the academic year. Keep in mind that last year Hoosier taxpayers lost $154 million in fraud to a couple of online charter schools. The charter school model is unstable, so the desire to infuse them with even more state dollars is financially foolish. 

“The supermajority touts school choice, but what about the parents who want their children to attend public school? This bill is a naive solution to the difficulties our urban schools experience. Remember the money follows the child, and the majority is telling parents how that money will be spent.” 

Op-ed: Hoosiers need Medicaid and that won’t change with a new administration

As Trump takes his second oath of office, we get closer to the possibility of Robert F. Kennedy and Dr. Mehmet Oz as our nation’s top public health officials. They’ll become the point people in charge of state Medicaid funding and policies. Like Indiana, the federal government will have some difficult budget decisions to make thanks to stagnating revenue.   

Republican tax cuts, mostly for the wealthy, continue to stress our budgets. Something will have to give as we approach an unsustainable level of national debt. Trump has declared cuts for Social Security and Medicare off-limits, but no similar promise has been made for Medicaid. It’s clear that federal funding for Medicaid is on the chopping block. Remember that the federal government foots around 70% of Indiana’s $19 billion bill. Over 2 million Hoosiers are on this growing health care program, and any significant changes could affect their access to care. Here are a couple of devastating cuts that could happen to the Medicaid program: 

 The first is block granting. The idea of block grant federal funding for Medicaid has existed since President Ronald Reagan's administration. With these grants, the government gives a fixed amount of funds based on inflation and population growth. This plan motivates states to contain costs, but it’s difficult to anticipate how much money Medicaid will need. Indiana would fare poorly under this plan since flat population growth and limited medical inflation would lead to a smaller grant. Our state would need to increase its share of funding to maintain the status quo. We can forget any additional enhancements like more waiver slots or the coverage of GLPs for weight loss. Block granting hasn’t gone anywhere for forty years, but with Trump returning to office this could be a reality. 

Second is the sunsetting of programs that fund our HIP program and supplements for eldercare assistance. If federal support is drastically reduced, the HIP program will end unless state dollars fund it entirely. 

The third is the recategorization of mandatory services. Medicaid currently has two general types of services covered: mandatory and optional. Mandatory services include hospital visits, doctor appointments and outpatient services. Optional services include dental, physical therapy and prescription drugs. To cut costs, mandatory services could be recategorized and covered at a reduced rate. This would be devastating to Hoosiers and providers since it lowers their reimbursements. Indiana already has shortages of care, and one can only imagine what would happen if the required provisions for Medicaid changed. 

 Fourth is the creation of work requirements, and a bill has already been filed for this session. Indiana attempted to implement work requirements last year, but it was blocked by the Biden Administration. 

Fifth is watering down the federal pledge to fund 90% of the Affordable Care expansion. This could also spell the end of Indiana’s HIP program that supports thousands of Hoosiers. 

It’s pitched as an effort to save costs, but thousands would lose their coverage. Over 500,000 Hoosiers would potentially lose health care coverage. Uncompensated coverage would shift the cost to hospitals and providers. Fewer people will go to the doctor and those with existing conditions will worsen trying to avoid enormous medical bills.  

National decisions will have an impact on Hoosier health and our Medicaid program. We’ve been blessed with infusions of federal dollars since COVID-19. Indiana is already struggling without the extra funding, and the prospect of funding reductions will only aggravate our predicament. The majority party leaders have been open with their desire to cut funding, saying our current allocation “keeps them up at night.” At the December Medicaid forecast, the same leadership said our funding challenge “scared them.” Even if federal cuts don’t happen, Indiana’s state funding will need to increase by $500 million.

Every dollar is attached to a person, and we cannot cut more. The supermajority has cut services for medically compromised children, vulnerable adults and families in need of child care. Indiana has saved a minimal amount with horrendous consequences and unnecessary pain. I sincerely hope that efforts to curtail costs will not be cut focused. We have other options, including creatively expanding our revenue, to adequately fund Medicaid. 

We could increase the cigarette tax by $2 per pack. This would add over $100 million a year to our revenue. Another element is promising to stop reverting Medicaid appropriations to the general fund. This has been done for the past several years. We could also fully consider maximizing any unrealized federal funding opportunities that we’re not using. The window is closing to implement these changes before it’s too late. I have seen the legislature act quickly in the past to provide tax relief, so I know it can be done if we have the will to act. 

This session, let’s protect Medicaid and preserve Indiana’s essential health infrastructure. Let's protect Medicaid since it's a vital program for one in three Hoosiers. Let’s lead by example and show other states we’re up to the Medicaid funding challenge. Let’s eliminate our health care deserts. Indiana can become a health care oasis for all Hoosiers regardless of income or health conditions.

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.” 

Porter comments on December Medicaid forecast

Today, Dec. 17, the Family Social Services Administration (FSSA) gave its final forecast on Indiana’s Medicaid program before the 2025 session. State Rep. Gregory W. Porter (D-Indianapolis) released the following statement: 

“Today’s Medicaid forecast wasn't as shocking as last year, but it still had some unfortunate elements. This year’s forecast made it clear that the FSSA’s operations, especially their cost anticipations, need to be substantially reformed. 

“Medicaid costs are projected to increase due to rising costs of care and increased utilization. Indiana isn’t an anomaly when it comes to increased costs. This is something happening across the nation as health care inflation outpaces other expenditures, even short-term inflation for the cost of food. The state funds about a third of the total cost for Medicaid, totaling over $5 billion

“Part of the reason for increased funding is Indiana’s actuary wrongfully estimated how many people would leave the program post-COVID-19. The actuary estimated that 400,000 Hoosiers would leave, which was off by a whopping 200,000. This variance is a major reason why Medicaid needs more state dollars than expected. Other factors pale in comparison to the increased cost projections. 

“Sadly, in response to rising costs, the FSSA is continuing to cut services for our elderly, disabled and children. How much more can we cut from these families? Have we not done enough damage? Other policymakers are misguided if they think we can remedy Medicaid’s rising costs by wringing out every last penny from our neediest Hoosiers. These waitlists and cuts won’t close the funding gap. 

“After many Medicaid Oversight Committee hearings and forecasts, I’m still waiting for the supermajority to step up. We need to make real-world, substantive and constructive suggestions for funding difficulties that don’t involve cutting and limiting services to our most vulnerable.”  

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.”