HB 1001 / Chamber Supports in Part
Indiana’s updated state revenue forecast shows a shortfall of $403 million in the current fiscal year and a reduction of $1.97 billion over the next two fiscal years. Although revenue will continue to grow year over year, the pace of growth will fall far short of earlier projections. Slower job and wage growth, stock market underperformance and recent changes in federal policy have all contributed to the revised outlook. Lawmakers now face a situation where they can allocate only $170 million in new revenue for fiscal year 2026 and just $30 million for fiscal year 2027. These limited resources will force the General Assembly to cut existing programs or find new sources of revenue to fund state priorities.
The Indiana Chamber continues to push for investment in core economic growth initiatives, even in a tighter fiscal environment. Chamber priorities include the Direct Flights program, which improves business connectivity and talent attraction; manufacturing readiness grants, which support innovation and capital investment; and the Hoosier Workforce Investment Tax Credit, which encourages employers to upskill their workers. These programs strengthen Indiana’s economy and help the state remain competitive.
Raising the state’s cigarette tax presents an opportunity to improve public health and strengthen state finances. Indiana ranks 11th in adult smoking rates nationwide, and the state has not raised its cigarette tax since 2007. The Chamber backs a $2 per pack increase to reduce smoking, boost workforce productivity and generate additional revenue. This policy would also ease the strain on Medicaid and other public health systems, which face rising costs even as enrollment declines.
The Chamber continues to engage directly with fiscal leaders and legislators to promote a responsible, forward-looking approach to the budget. We offer data-driven policy solutions and remain committed to supporting Indiana’s long-term economic and fiscal health.
