Legislative Accomplishments - State Sen. Dan Dernulc

MAJOR TAX CUTS FOR HOOSIERS

I was proud to support major tax cuts during the 2023 legislative session. Most importantly, Indiana's income tax will drop to 2.9% over the next four years. This permanent tax cut is expected to save Hoosiers over $1 billion by 2027, including more than $100 million in 2024 alone.

In addition:

  • Indiana doubled the income tax deduction parents can claim for a new child.

  • Members of the Armed Forces and National Guard will be totally exempt from state income tax on their military pay starting in 2024.

  • Hoosier businesses, especially small businesses, will see over $50 million in federal tax savings through a new law making more LLCs and S corps eligible for a federal tax deduction already available to larger corporations.

  • Indiana coupled the earned income tax credit to the federal credit requirements as of Jan. 1, 2023, which will make it easier for families to claim the credit in Indiana and save them an estimated $20 million per year.

  • Going forward, the General Assembly will review our entire state and local tax system and consider ways to lower the income tax and/or property taxes on homes.

REDUCING HEALTH CARE COSTS

Unfortunately, multiple national studies have shown Indiana's health care prices are among the highest in the country. During the past legislative session, the General Assembly enacted several laws to help reduce the high costs of health care.

  • SEA 8 requires state-regulated health insurance plans to return a minimum of 85% of the rebate on a prescription drug to the consumer or the plan sponsor.

  • HEA 1004 introduces "site of service" language, which will save patients money by prohibiting doctors' offices owned by large hospitals from automatically billing at a higher rate than independent doctors' offices.

  • SEA 7 prohibits primary-care doctor contracts from including noncompete agreements, which are used to restrict doctors from being able to practice in their current community if they change employers. This change will make Indiana more attractive for new and relocating physicians because they will have more freedom to practice. It will also make it easier for patients to keep their current doctor if their physician changes employers.

IMPROVING STATE POLICE PAY

During the 2023 legislative session, the General Assembly allocated more than $95 million to increase salaries for Indiana State Police troopers, Department of Natural Resources conservation officers and Alcohol and Tobacco Commission excise officers. Additionally, the pay matrix for these officers is shortened from 20 years to 15 years so they see a significantly faster salary increase throughout their careers. Across all three law enforcement agencies, these changes are designed to make the salary for these officers more competitive with the goal of increasing recruitment and retention.

SUPPORTING ALL STUDENTS

Indiana's new state budget invests in both public schools and educational choice for families. Under our budget, funding follows the child because we want taxpayer dollars to go toward teaching children in the learning environment that best suits them.

Over the next two years, K-12 education in Indiana will receive $2.9 billion in increased funding. While we won't know how much any school receives until enrollment counts are completed, the nonpartisan projections done at the time the state budget passed estimate that traditional public schools will serve 88% of students and receive 90% of the state money, vouchers 8.5% of students and 6% of the money, and charter schools 3.5% of students and 4% of the money.


Here are some of the ways Indiana's new budget expands educational options for families.

  • Almost every child in Indiana is now eligible for our state's Choice Scholarship Program to help cover the cost of attending a non-public school in their community. Any child from a family with a household income below 400% of the amount to qualify for school lunch assistance is now eligible. Find out more about the Choice Scholarship Program here.

  • Until now, students at public charter schools were at a significant local funding disadvantage because charters did not have a permanent funding source for building and transportation costs. The new budget allows charter schools in some of Indiana's most populated areas (Lake, Marion, St. Joseph and Vanderburgh counties) to receive a share of local property tax revenue to offset those costs.

  • Indiana is continuing to offer customizable educational opportunities to special-needs students through the Education Scholarship Account Program. High schoolers seeking to participate in on-the-job learning activities can benefit from the same flexibility through the new Career Scholarship Account Program. Both programs provide families with state dollars in a dedicated account that can be used for approved educational purposes.