Miller's April Recap
Dear neighbor,
Last week, we wrapped up the 2025 session of the Indiana General Assembly. There were a lot of highs and lows this session, and I’m happy to share that my House Bill 1468 passed both chambers and is now awaiting Gov. Mike Braun’s signature. I drafted this legislation to help small businesses across our state. This legislation allows tobacco businesses to vend at public events with a three-year supplemental cigar sales certificate, allowing them to sell cigars temporarily at an event. This bill will ensure that small businesses have the opportunity to engage with their communities and promote their trade outside of their shops.
On the other hand, Senate Enrolled Act 1 was signed into law by the governor. In a late-night concurrence vote in the Senate, the bill passed 27-22. Before returning to the Senate, it passed the House 65-29. Let’s get into the reasons on why I voted NO on SEA 1.
This law is not what it seems. It’s a bait-and-switch that misleads Hoosiers into thinking it delivers meaningful property tax relief when, in reality, it offers limited help. This relief is only extended to homeowners, while renters are left out entirely. Yet, renters will still feel the impact of the bill’s hidden consequences as local governments will be forced to raise income taxes to cover a massive funding gap.
This means Hoosiers will pay more for less:
Local income taxes could potentially increase by $1.1 billion annually, totaling $3.3 billion by 2028.
SEA 1 encourages local governments to recoup their lost property tax revenue by raising local income taxes, which businesses do not pay, and it creates a new municipal local income tax of 1.2% that cities and towns of 3,500 people or more can impose on their residents beginning in 2028. This will be included in their county’s income tax, with a max of 2.9% total.
SEA 1 forces local governments to either raise local income taxes or cut essential services like police, fire, emergency medical services (EMS), libraries, parks and road maintenance. These cuts will have devastating impacts.
Allen County stands to lose over $89,000 by 2028.
Another concerning change is the inclusion of language from Senate Bill 518, which allows property tax dollars to be redirected from public schools to charter schools. These are the same institutions that once insisted they didn’t need public support, yet now they’re receiving taxpayer money while traditional public schools continue to face severe funding challenges.
At a time when Indiana is already struggling with teacher and counselor shortages, this legislation only adds to the difficulty of attracting and retaining educators. Our students are the ones who suffer most. Instead of investing in the schools that serve the vast majority of Hoosier kids, this law shifts resources away when they’re needed most.
SEA 1 sends the wrong message. It’s misleading, poorly designed and ultimately harmful. It fails to deliver real, lasting relief. It turns its back on public safety and education. And it doesn’t reflect the priorities of Hoosiers who believe in strong communities and opportunities for all.
To the educators who came to the Statehouse to speak out against SEA 1 — thank you. Your advocacy matters. House Democrats and I are proud to stand with you and will continue fighting on your behalf.
Small Business Resource Fair at Government Center
From 9 a.m.-3 p.m. ET May 22, join the Indiana Department of Administration Division of Supplier Diversity (IDOA DSD) for The Resource Garden, a small business resource fair at the Indiana Government Center South, 402 W. Washington St. The event is a partnership between IDOA DSD and the Indiana Department of Transportation Business Opportunity Initiative Division.
The Resource Garden offers entrepreneurs a chance to network, find funding and mentorship opportunities and connect with experts to boost marketing and operations strategy within their businesses.
The event is free, with parking and lunch provided. To register, click here.
Final State Budget Fails Working Hoosiers
On April 24, the last day of session, Indiana Republicans passed the final version of the state budget, House Enrolled Act 1001. The budget was unveiled the previous night at 6 p.m., which gave House Democrats only 24 hours to review the document. Statehouse Democrats were not included in budget negotiations or discussions, meaning our communities didn’t get a seat at the table.
Due to President Trump’s tariffs, Indiana is $2 billion short for our two-year budget. We had to cut our spending by close to 4%. House Democrats’ goal was to preserve vital government services, like K-12 education and Medicaid, while cutting administrative and bureaucratic costs. But this budget prioritizes all the wrong things. Essential services Hoosiers rely on are cut, while income tax cuts and handouts will continue for Indiana’s wealthiest families. Our working and middle-class families will bear the brunt of these budget cuts.
Parts of the budget I support and have advocated for include:
Increasing the cigarette tax to nearly $3 per pack to remedy the $2 billion budget deficit. Revenue generated from increasing the cigarette tax will go to the Medicaid program.
Tapping into the Pension Stabilization Fund to offset the deficit. The state deposited an extra $3.7 billion into the fund due to an influx of federal dollars during COVID-19.
A 30% budget cut for the Indiana Economic Development Corporation (IEDC) after concerns with the LEAP district, land purchases and a lack of transparency.
Requiring the Indiana General Assembly to approve and oversee the appropriation of funds to the office of the Secretary of State. The current Secretary of State has given over $308K in spot bonuses to employees and awarded millions in secretive, no-bid contracts.
My concerns with the final budget include:
Traditional public school funding increases by only 3.3% in 2026 and 1.6% in 2027, which doesn’t keep up with inflation. This number is also inflated given the fact that $160 million for textbook costs is included in the funding increase.
Education experiments, however, receive a larger-than-inflation funding increase.
Brick-and-mortar charters will receive a 4.8% increase in 2026 and a 3.7% increase in 2027 and virtual charters will increase by 14.2% in 2026 and 9% in 2027.
Traditional public schools will have limited state funding growth while losing $744 million in property tax revenue due to the effects of Senate Enrolled Act 1.
Making private school vouchers universal in 2027. Vouchers will increase by 10.1% in 2026 and 23.4% in 2027.
Decreasing the eligibility level for On My Way Pre-K from 150% of the federal poverty level to 135% of the federal poverty level. Fewer working families will be eligible to qualify for pre-K.
Cutting the budget for the Commission for Higher Education (CHE), reducing students’ scholarships.
Reducing the funding for the Health First Indiana program to $80 million, a $145 million cut from the 2023 biennial budget.
Increasing the funding for Real Alternatives, a scammy organization that preys on pregnant women. Real Alternatives postures as women’s health clinics but in fact spreads misinformation and offers no privacy-protected medical care to women.
Putting the Indiana University Board of Trustees completely under the control of the governor by eliminating the alumni-elected trustees positions.
Defunding Dolly Parton’s Imagination Library Program, which provides free, age-appropriate books to children from infancy to five.
Eliminating funding for Public Broadcasting Service (PBS) TV and radio.
No funding for trails or other quality of life projects.
This budget does little to nothing for many Hoosiers. It fails to acknowledge the daily reality that many in Indiana are facing: Can I afford the things I need today? This budget fails to put food on Hoosiers’ tables. It fails to help Hoosiers afford the rising cost of health care. It fails to provide for 90% of children who choose public K-12 education, instead prioritizing private school vouchers. This budget fails to help working Hoosiers get ahead.
As always, please reach out to my office with any questions, thoughts or concerns at h82@iga.in.gov.
In service,
Rep. Kyle Miller