Indiana lawmakers get first glimpse of budget asks for upcoming 2026 and 2027 fiscal years

Indiana’s State Budget Committee on Tuesday kicked off its first hearing for the upcoming 2026 and 2027 fiscal years. Lawmakers are set to file an initial vision for the $40 billion-plus biennial budget in January.

Judicial agencies, three statewide elected officers and a higher education body made their cases before the committee, which is comprised of four lawmakers and the state’s budget director.

Indiana Supreme Court Chief Justice Loretta Rush asked lawmakers for an additional $3 million to develop a statewide jail management system, $1.5 million to fund security measures for local courts and $1.5 million to implement “safe baby courts” protecting vulnerable young children.

“This is the most difficult project the court has ever encountered,” Rush said of INJail, the statewide jail management system. She said that courts around the state currently use about 20 different systems, resulting in communication breakdowns, delayed releases and other problems.

Finishing INJail, Rush added, “really would put Indiana quite far along with regard to public safety and the data.” Though it’s expected to cost $3 million annually to develop, Rush’s staff said operating and maintenance expenses would eventually be lower, at an estimated $1 million annually.

Appeals Court Judge Paul Felix asked lawmakers for money to expand the court’s “Appeals on Wheels” traveling oral arguments program, increase salaries and keep up with information technology costs.

While the Indiana Commission on Court Appointed Attorneys and Indiana Public Defender Council requested to keep their funding flat, the Indiana Prosecuting Attorneys Council came with larger asks.

Andre Miksha, deputy director of administrative and civil law, said the Legislature doesn’t put enough money in the agency’s general fund account to pay all of the employees that should get their salaries from there. The council has been pulling from federal child support dollars to “make ends meet” instead.

“By February each year, we are moving individuals from our general fund and starting to pay them out of our IV-D monies,” Miksha said. “And there are some employees in our staff that, although they aren’t necessarily IV-D employees, see their compensation come out of that fund.”

The agency wants an additional $626,000 in its general fund to fix that, as well as a combined $932,000 in salary increases, benefit premium updates and other costs. It also asked for an additional $1.5 million to add and retain High-Tech Crime Unit staff and pay for forensic analysis software.

Sen. Ryan Mishler (R-Mishawaka), chair of the Senate Appropriations Committee noted that the operations and High-Tech Crime Unit requests would be 50% increases or more.

“I mean, people are coming in here asking for two and three (percent increases),” Mishler, R-Mishawaka, said. “That’s a pretty bold ask.”

Statewide officers present

Three of Indiana’s four statewide elected officials’ agencies appeared before the committee Tuesday. Attorney General Todd Rokita’s office wasn’t on the schedule.

Comptroller Elise Nieshalla asked to keep her agencies’ budget flat.

Treasurer Daniel Elliott, however, asked lawmakers to consider doubling his office’s allotment for education scholarship account (ESA) from $10 million to $20 million. Families can use the scholarships to pay for educational programs, therapies, services and more for their disabled children and non-disabled siblings.

“We now, for the first time, have a waiting list,” Elliott said. “And part of the reason for that ask for that increase is because we literally have families with disabled children who would like to be on this program and are not able to be.”

His staff said the $10 million has been enough for about 800 students. There are more than 600 — worth $8 million — on the waitlist.

Sen. Fady Qaddoura, D-Indianapolis, suggested Indiana could save money on high administrative costs by moving the program to the Indiana Department of Education or Indiana Commission for Higher Education. He questioned why the state’s chief investment officer is administering education money.

“While, yes, we do investments, I’m extremely passionate, as you know, about school choice programs and I feel like we’ve done an excellent job,” Elliott said, noting that his office has earned national recognition for how it runs the program.

Qaddoura was still skeptical in comments to the Capital Chronicle.

“I respect his passion. I just disagree with his position,” Qaddoura said of Elliott. “I don’t think the treasurer’s office is responsible for educational outcomes in the state of Indiana. His recommendation to double the size of the ESA … should have been a discussion with the Department of Education, with educational experts and policy experts, in consultation with our schools across the state … This should be in a piece of legislation that is presented to the committee on education, and not just a finance number presented on the treasurer’s budget for the next two years.”

Rep. Ed DeLaney, D-Indianapolis, also went on the attack. He asked why the treasurer’s office is the sole trustee for the State Police Pension Trust, and why that fund isn’t under the $50 billion Indiana Public Retirement System (INPRS).

“We work with them directly and they have a voice,” Elliott said, arguing that fund members can call him and his team. “They are having a hard time doing that with something as large as INPRS.”

Elliott noted that his fund’s returns are better than the system’s returns, prompting DeLaney to ask, “Do you think you should run INPRS?” in the contentious exchange.

“No, sir. I did not make a criticism. What I did is I pointed out that we are doing very well with what we’ve been given,” Elliott later said.

His office also asked for more money to cover higher salaries and inflation-related increases, and to add staff.

The Secretary of State’s Office, meanwhile, sought additional funding to add staff, sustain its investor education and financial literacy programs, maintain voter education and outreach programming, cover pay and benefit increases, pay for voter list maintenance, upgrade the statewide voter registration system’s software and more.

Secretary of State Diego Morales did not appear. Instead, Deputy Secretary Jerry Bonnet said that statutorily required voter list maintenance is time-consuming for counties, so it’s done in years without federal elections. And, he said, the voter registration system more than 15 years old — near the end of its life.

The Commission for Higher Education also presented, although the committee will hear change requests from public colleges and universities on Wednesday.