Legislative Accomplishments - State Sen. Jack E. Sandlin

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.

INVESTING IN OUR FUTURE


Indiana's new state budget increases funding for K-12 education by $2.9 billion over the next two years. Here are some of the key changes included within that $2.9 billion increase.

  • Public schools can no longer charge families for textbooks and other curricular materials, saving Hoosier parents hundreds of dollars per year.

  • Under the school funding formula, schools are seeing increased per-child funding for every student they teach, with targeted increases for special-education students and high schoolers enrolled in high-wage, high-demand vocational courses.

  • Under HEA 1591 from the 2023 session, school districts must spend at least 62% of their state tuition support funding on teacher pay and benefits. Teacher salaries will be locally bargained under the new budget until later this fall, and we should see school districts raising pay and/or increasing benefits for their teachers.

  • The state provided an extra $700 million to pay down the unfunded liability for our largest teachers' retirement pension fund. This move is a win-win for retired teachers and all taxpayers. By putting an extra $700 million toward this fund, we are moving up the date for when the pension will be fully funded, showing that Indiana is keeping its financial promises to teachers and ensuring Hoosier taxpayers won't be on the hook for this pension liability years into the future.

  • The budget provides an $11 million increase for Secured School Safety Grants, which help school districts cover a wide array of safety-related costs.

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.