‘Put their needs first’: Braun calls for property tax, health care price cuts at State of the State

Gov. Mike Braun gives his first State of the State address in the Indiana House Chamber, Wednesday, Jan. 29, 2025. (Nate Pappas for the Indiana Capital Chronicle)

Although Indiana Gov. Mike Braun has been in office for just two weeks, he’s already touting “wins” for Hoosiers accomplished under his tenure — and has big plans for the ongoing legislative session.

In his first State of the State Address on Wednesday evening, Braun focused on changes to property taxes, government efficiency and health care costs.

“Indiana does many things well, but the question we face is simple: Will that be a plateau, or a foundation to build something truly exceptional?” Braun asked. He spoke from the Statehouse in Indianapolis, addressing lawmakers from Indiana’s House of Representatives and Senate, along with a balcony full of statewide and federal officeholders, judges and other guests.

While Braun orated, a majority of the Indiana Black Legislative Caucus — joined by more than a hundred members of the public — gathered on the next floor up, railing against his cuts to diversity initiatives. A separate group of protesters gathered outside and chanted against deportation.

Cutting taxes, spending

Braun focused the meat of his speech on cutting property taxes — and told local units of government to learn to live with the losses.

Hoosiers across the state are struggling with “huge hikes” in their property tax bills, he said. He pointed to one Greenfield couple, Rob and Stephanie Parks, who have seen their annual bill more than double, from $715 to $1,500, since just 2021. The couple attended the speech and sat with the first lady.

Braun’s property tax plan, housed within Senate Bill 1, would cap annual increases in property taxes for all property types, including homesteads, to 3%.

Homeowners aged 65 and older, who have minor children or who are low-income would see increases capped at 2%. The legislation would also raise the homestead deduction for houses worth less than $125,000 and requires a property tax transparency portal to go live by 2026.

Tax relief will “have an impact on local governments, and I realize that, but taxpayers are struggling, and we have to put their needs first,” Braun said.

His administration, he added, is having “vital discussions” with local units of government about protecting police and fire services, as well as schools. Property taxes in Indiana fund communities, not the state.

“I look forward to working with all of you to get this bill across the finish line,” he said. “Hoosiers sent me here with a clear directive that this cannot be ignored.”

Braun also revisited campaign promises like tax relief on retirement income and tax-advantaged farm savings accounts.

“It’s time the government did more with less,” he said.

His address also highlighted recent efficiency-focused executive orders directing agency leaders to cut a quarter of regulations, bring employees back to the office, end diversity initiatives (which he said led to “division and inefficiency”) and more.

Braun also played up his reorganized cabinet, saying it was “designed to run like a business” and add accountability via secretaries that report directly to him.

Public safety, economic development

Braun touched on tougher treatment for drug dealers and repeat violent offenders — plus improving police recruitment, retention and safety — as priorities.

But illegal immigration was his focus.

“Americans sent a clear message in November: they do not want open borders. Indiana will do whatever we can to help secure our southern border and end this crisis that has brought deadly fentanyl and crime to our streets,” Braun said.

He said unlawful entry brings “serious risks” to Hoosier communities, mentioning how a Honduran man who was allegedly illegally in the country is accused of stabbing a 13-year-old girl at a September baseball game in Lowell.

“Indiana will not be a safe haven for illegal immigration,” Braun said. “As (President Donald) Trump(‘s) administration begins to return illegal aliens with criminal records to their home countries, we will assist.”

His words built on an executive order this week that orders all Hoosier law enforcement agencies to “cooperate fully” with federal immigration enforcement. He also told reporters that the 50 Indiana National Guard soldiers stationed at Texas’ border with Mexico will stay there, for now.

Braun also hinted at a “reorganization” of the embattled Indiana Economic Development Corp. — which has invested millions into a controversial Innovation District — and a greater focus on supporting homegrown entrepreneurs.

“(Wife) Maureen and I lived the American dream of starting homegrown businesses in our hometown of Jasper, and I want every Hoosier to have the opportunity to live that dream as well,” Braun said.

Health care costs, education

Property tax bills aren’t the only ones on the rise. The cost of health care has skyrocketed even though outcomes haven’t improved.

Braun said he’d fix that — and succeed where others have failed.

“For too long this issue has been seen as too tough to tackle because of entrenched special interests,” he said.

Braun said he’d already gotten a start with another spate of executive orders, which direct agencies to work on price transparency, audits and pharmacy middlemen. Priority legislation would also take on anti-competitive practices and surprise billing.

He pointed to another guest, Melissa Dietrich, who was hit with a shock $1,348 bill after getting an annual physical — though such checkups had previously only cost her a $35 copay.

“She eventually settled the bill for $305, but it didn’t feel right. … Melissa, it shouldn’t feel right. We’re going to try to fix that,” Braun said. “Hoosiers should be able to see what they’re going to have to pay before they receive care, and a medical bill like that should never come as a surprise.”

Other priority bills would take on third-party health insurance plan administrators, pharmacy middlemen and cash-flush nonprofit hospitals.

Braun pledged that his education plan would “put parents in the driver’s seat and kids first.” A slight expansion to universal “school choice” is expected to pass muster.

He also threw his support behind proposals increasing teacher pay — landing him his third standing ovation of the night — establishing a school safety office and promoting workforce development.

One such program, at 4T Academy, got a shout-out. Dozens of students have gotten production jobs with Toyota and others now work as advanced manufacturing technicians. Braun said that model should be replicated across the state.

He finished with a call to the state’s elected officials.

“My message to my partners in the General Assembly on both sides of the aisle and my fellow statewide office holders is one of unity. We were all elected by Hoosiers to get results,” Braun said. “Will we treat this moment as a plateau, or as a foundation to build something truly exceptional?”

He spoke to a crowded chamber — and more than a dozen conspicuously empty seats.

Upstairs, at the Black caucus’ “Unity Rally,” those state lawmakers and members of the public prayed together. They clapped and cheered as speakers extolled the merits of diversity, equity and inclusion efforts — and lambasted Braun’s attempts to expunge such initiatives.

One speaker asked Braun to define his push to “merit” — to ensure that it’s “not a euphemism for the denial of opportunities to anyone who isn’t white, male or straight.”

Legislative leaders react

Leaders for the Statehouse’s Democrat legislative caucuses had harsh words for Braun in a news conference held directly after his speech, while Republican caucus heads backed their governor’s goals.

House Minority Leader Phil GiaQuinta focused his critiques on Braun’s property tax plan, calling it “frankly, a farce.”

“The proposals we’ve seen so far shift more of the burden of funding our schools, police and first responders to local government. That means Hoosiers will continue to pay more in taxes, just to a different entity,” GiaQuinta said. “It’s a bait and switch attempt for Republicans to blame cities and counties for rising costs, and then run for reelection on cutting taxes.”

Senate Minority Leader Shelli Yoder criticized Braun’s property tax plan for leaving out tenants — who pay property tax indirectly through rent — as well as his goals for health care and education.

“Transparency is a good first step, and one that the Legislature already has taken two years to look at, but it doesn’t build hospitals … it doesn’t reduce wait times, and it doesn’t make life-saving medications any cheaper,” Yoder said. She also asserted that public schools, which serve 90% of the state’s students, have seen resources “siphoned away” in past private school voucher-funding moves.

Republicans lauded Braun, with House Speaker Todd Huston commenting on the “alignment” between the GOP caucuses and the governor.

Senate President Pro Tempore Rodric Bray said he believed local governments do have room to cut spending, saying, “Government is famously not very efficient every day of the week.”

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He called GiaQuinta’s take on the property tax plan “harsh,” adding, “Every dollar of property tax goes to local government … so we’re not really involved in the property tax. We were … engaged because we set some of the parameters, but we don’t get the dollars from it.”

Asked if that meant the General Assembly has less skin in the game — by making cuts the state won’t feel — Bray said no.

“I think we’re very interested,” he continued, noting that lawmakers use about half the budget to fund schools. “… We want our local government partners to perform the functions that they need to perform.”

He also defended administration agenda bills that seek to cut health care costs even as another proposal would kick thousands off Medicaid through a cap on the number of enrollees.

“If they move beyond the income levels, I think there should be opportunities for them to get other policies, whether it’s through the Affordable Care (Act) or other opportunities to be covered by some type of insurance there,” Bray said. He highlighted the dozen or so bills tackling health care costs.

The Black caucus’ rally additionally divided leaders.

Democrats defended their colleagues, with Yoder saying the gathering and its timing were intended to “send a message that they resist this idea that diversity, equity and inclusion are somehow harmful to this state.” She emphasized that the caucus’ First Amendment rights to speech and assembly.

Huston, however, called the lawmakers’ absence “disappointing,” while Bray said it was “a little frustrating.”

“It’s certainly their prerogative to show up or not show up, but it’s unfortunate, frankly. We want them at the table,” Bray said.

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