JULY 22, 2022

 The Indiana General Assembly will convene on Monday, January 25th for a Special Session. Governor Holcomb called a Special Session to consider a $225 rebate to taxpayers. The Senate has outlined multiple bills for consideration, including legislation dealing with abortion, the gas tax, and the sales tax on utilities. None of the Senate bills include the proposal supported by the Governor; however, House Speaker Todd Huston has said the House supports the proposal.

Attached is an outline of the session calendars recently discussed by House and Senate leaders. We will keep you updated on timing, as it is subject to change.

SENATE FISCAL RELIEF

  • SB 3 is the Senate Republicans proposal for providing financial relief to Hoosiers in response to the State of Indiana’s historic budget surplus. The package is approximately $1B in relief and other spending priorities.
  • The proposal includes capping the sales tax on gasoline, suspending the annual increase in the gasoline excise tax through the end of the fiscal year, suspending the sales tax on utilities for 6 months, paying down state $400M in pension debt, and funding $215M in state capital projects that have been unable to go forward due to rising costs.
  • SB 3, authored by Senator Travis Holdman (R-Markle) provides appropriations to backfill the loss in state revenue for road funding, some of which flows down to local units and requires the suspension of the sales tax on utilities to be noticed to customers by all utilities, including municipal utilities. Aim will work to ensure that road funding for local units stays whole and ensure that the administrative challenges of small utilities are understood by the General Assembly as we move through this process.

TAXPAYER REFUND

  • On July 6, Governor Holcomb called the legislature into a special session to provide financial relief to Hoosiers hit by rising inflation, global energy crises, and ongoing supply chain challenges. The legislature has 40 days after the session declaration to conclude so they plan to commence committee proceedings on July 25 and finish in a couple of weeks.
  • Governor Holcomb’s proposal for relief, which has been supported by House leadership, would authorize an additional taxpayer refund of $225 for individuals and $450 for families filing jointly.
  • Aim will watch this legislation as it moves through the process to ensure that no language is added that affects municipal budgets, especially knowing that there has been a lot of discussion about reducing or suspending the gas taxes that fund local road and street projects.

ABORTION ACCESS

  • Though Governor Holcomb called the special session with the purpose of providing financial relief, the session coincided with the Supreme Court Dobbs decision that allowed states to regulate abortion as they see fit.
  • SB 1, authored by Senator Sue Glick (R-LaGrange) makes abortion illegal except for the mother’s medical necessity or in the case of incest or rape. SB 2, authored by Senator Ryan Mishler (R-Bremen) provides additional investment in state programs aimed at supporting mothers, children, and families.
  • Because the abortion issue is contentious and complex to litigate, it is likely that it will occupy most of the discussion during the session. It will be entangled with the fiscal discussions that have a potential impact on municipal government.

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