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

A copy of Gov. Braun’s address is at the end of the article.

by Leslie Bonilla Muñiz, Indiana Capital Chronicle
January 29, 2025

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, in my mind, 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 “important discussions” with local units of government about protecting “vital” 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.

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 … 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.

“We were all elected by Hoosiers to get results,” Braun said. “… Will we treat this moment as a plateau, as mentioned earlier, 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.”

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.

Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.

Gov. Mike Braun’s 2025 State of the State Address

President Pro Tem Bray, Speaker Huston, members of the General Assembly, honored guests, Maureen and family, fellow Hoosiers: it’s my honor to address you tonight. 

Every year for the last six years, I’ve had the privilege of visiting each of Indiana’s 92 counties. 

I’ve met thousands of Hoosiers on their farms, in their small businesses, in their schools, their churches, and their homes. 

Not everyone I met has had an easy time these last few years. Many families were barely holding their heads above water as prices just kept rising. 

But despite all of that, what comes through most clearly when listening to Hoosiers is our resilience, our optimism, and a shared desire to make our state truly great. 

The state of the state is strong because Hoosiers are strong.

In my inaugural address, my message was that our state is at a crossroads. 

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? 

I put out my Freedom & Opportunity Agenda because I believe Indiana should be a national model for bold, innovative leadership. 

The positive reception to that plan has been overwhelming, and in November Hoosiers sent a resounding message that freedom and opportunity is what they want. 

I believe the work of this legislature has put us in position to achieve great things, if we seize this opportunity and act decisively. 

Tonight I’m going to outline the wins my administration has already secured for Hoosiers, and legislation we can pass now to make life better for the people we have the honor to serve. 

Hoosiers have been hurting from high prices. I’m proud that my budget continues the historic efforts of past Governors and this General Assembly to keep reducing the income tax burden on Hoosiers. Indiana has led the way, and I want to find new ways to continue delivering historic tax relief. 

Too many seniors and young families are getting priced out of their homes due to runaway property taxes. 

There are stories all over the state of Hoosiers struggling with huge hikes in their property tax bills. Janice’s bill in Mooresville went up 44% since 2021. Grant in Plainfield saw his bill go up 32% in that same time. Shawn and Kimberly’s bill in Martinsville increased nearly 50%. And here with us tonight are Rob and Stephanie from Greenwood. They’ve lived in the same house for 27 years, and since 2021 their property tax bill has more than doubled. “Skyrocketed” in Robert’s words, from $715 a year to over $1,500. Hoosiers from all over the state told me these tax bills keep rising, but wages aren’t keeping pace. This is not sustainable. Hoosiers like Rob and Stephanie need immediate relief. Thank you for being here tonight to share your story.

My property tax plan is built on three priorities: cut property taxes for Hoosier families – especially new homeowners and seniors, cap the annual increase to protect homeowners, farmers, and businesses, and reform the system through transparency.  

I understand this tax relief will have an impact on local governments, but taxpayers are struggling, and we have to put their needs first. Just like the example I set with my budget proposal, all governments need to do more with less. We will continue to have important discussions with local governments about how to protect vital services like police, fire, and schools. 

Senator Travis Holdman introduced our Freedom & Opportunity Property Tax Relief bill. I look forward to working with all of you to get this bill across the finish line. Hoosiers sent me here with a clear directive that this cannot be ignored. 

And while we’re at it, let’s give seniors on a fixed income some more breathing room with tax relief on their retirement income.

For farmers, let’s create tax-advantaged Farm Savings Accounts to help stabilize their income during bad crop years. And let’s address our aging Ag workforce with a tax credit for retiring farmers passing their farms onto the next generation. 

Raising kids is expensive, and all across the state parents are making tough choices at the kitchen table to make ends meet.

Every Hoosier family and business had to tighten their belts over the last four years. It’s time the government does the same.

One thing I learned building a business for 37 years — you can always run more efficiently. 

My vision is a streamlined, accountable, responsible government that keeps more money in your pocket and empowers the private sector to innovate and grow.

I’ve already taken action to make our government more efficient and accountable to the people. 

I directed my agency leaders to find big cuts in their departments, and signed a directive to cut at least a quarter of government regulations.

We replaced the political DEI ideology with a level playing field of MEI – Merit, Excellence, and Innovation. Diversity and equality are hallmarks of what we believe as a country, but these top-down DEI mandates led to division and inefficiency. MEI puts merit and results at the forefront, and everyone has the chance to get ahead with hard work. My agenda is about delivering Freedom and Opportunity for all Hoosiers. 

I directed state employees to come back to the office to improve productivity and collaboration. 

I created a new Cabinet structure that’s designed to run like a business, and adds a new level of accountability. My new Cabinet organizes the executive branch under 8 offices each led by a Secretary that reports directly to me. This improvement aligns agencies for more accountability, promotes more collaboration between agencies, and creates a clear chain of command so great ideas can get to me – no matter where they start. 

Tonight I’m inviting legislators to work with me to identify opportunities for efficiency, and many of you have already done that. Thank you. 

Together, we’ll create a more accountable and responsive state government. 

We’re also taking action to protect Hoosiers with the Freedom and Opportunity Public Safety agenda. 

We need to improve police recruitment and retention for Indiana State Police with competitive salaries, cost of living adjustments, and more comprehensive benefits. 

A major Freedom and Opportunity public safety bill written by Senator Aaron Freeman passed out of committee yesterday 8 to 1 on a bipartisan vote. This bill increases penalties on fentanyl and meth dealers, raises the price for targeting police, and adds mandatory minimum bail for repeat violent offenders. 

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. 

Unchecked illegal immigration brings serious risks to our communities. In September, an illegal alien stabbed a 14 year old girl with a butcher knife in a random attack in Lowell. 

Let me be clear, Indiana will not be a safe haven for illegal immigration. As the Trump administration begins to return illegal aliens with criminal records to their home countries, we will assist. 

A state should always put the safety of its own citizens first. 

On economic development we’re taking a new approach, focused on building skills for Hoosiers currently in the workforce to match high value, high wage jobs that employers need to fill. 

One way we’ll achieve that is our Hoosier Workforce Investment Tax Credit. Employers will have a strong tax incentive to invest in employee skills training and development. 

We’re restructuring the Indiana Economic Development Corporation to spread the benefits of economic development programs across the state, and expanding their mission to focus on existing employers and building on what other agencies are doing. 

And we’re creating an Office of Entrepreneurship and Innovation focused on Main Street entrepreneurs backed by their family, friends, and communities — not just businesses backed by venture capital. 

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. 

Health care premiums and drug prices keep going up, and many Hoosiers watching tonight are wondering how they’re going to pay for the care they need. 

For too long this issue has been seen as too tough to tackle because of entrenched special interests. 

Hoosiers pay some of the highest health care costs in the country, but we don’t get the best health care results. 

Based on experience taking on this issue in my own business, I developed my Freedom and Opportunity Health Care plan to lower prices, improve access, and promote innovation in the industry.

I signed several executive orders to pull back the curtain on health care prices and bring down costs. 

I directed our state agencies to bring full price transparency to health care services, so Hoosiers are empowered to shop around with clear, upfront prices. When providers compete, prices drop. 

I directed our agencies to address the misaligned incentives causing high drug prices like pharmacy benefit managers, or PBMs. 

We’re also leading comprehensive audits to find waste and abuse in our own state health care spending. 

But we need legislative action, and the General Assembly has shown a strong desire to get results. 

State Rep Brad Barrett introduced House Bill 1003, a bill that will require historic price transparency, stop anti-competitive practices driving up prices, and put an end to surprise billing. 

With us tonight is Melissa from Ossian up near Fort Wayne. After Melissa got a yearly physical and routine blood work, she was shocked to get a bill for $1,348. Anybody would be. 

She had good insurance, and always paid a $35 copay for testing or yearly checkups. 

She spent hours on the phone with the insurance company who assured her it was covered, and a provider who told her to work with her insurance company. Sound familiar? 

She eventually settled the bill for $305, but it didn’t feel right. Melissa, it shouldn’t feel right. 

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.

Let’s pass House Bill 1003 and reveal prices, fight health care fraud, and finally end surprise billing once and for all. 

And thank you Melissa for speaking out and advocating for lower health care prices for all Hoosiers. 

Another bill that will protect Hoosiers is Senate Bill 3, authored by Senator Justin Busch, which mandates that third party administrators for health insurance plans have a fiduciary duty to act in the best interests of the plan sponsor. 

State Rep Martin Carbaugh’s House Bill 1004 will make sure non-profit hospitals actually act like non-profits.
 
Senator Ed Charbonneau and State Rep Julie McGuire are leading the charge on PBM reform.
 
Thank you all for your leadership. Bringing down health care costs, improving outcomes for Hoosiers, and reforming this industry shouldn’t be a partisan issue, and it won’t be with me. 

On education, Indiana got some good news this morning in the Nation’s Report Card. We were in the middle of the pack, but now Indiana is ranked 6th in the nation in reading. That’s excellent progress, and a strong foundation to build on. 

I was a school board member for 10 years. I know firsthand the challenges our schools face.

Everything I do on this issue will always be based on one simple idea: Parents are in charge of their own kids’ education. Let’s put parents in the driver’s seat and kids first with universal school choice. My budget proposal has the plan to get it done. And with your help, we’ll win this historic victory for Hoosier parents and kids. 

Let’s increase teacher base pay to attract and keep great teachers. Senate Bill 146 authored by Senator Linda Rogers will raise the minimum salary for public school teachers by $5,000, and make sure that 65% of tuition support is going to pay teachers. 

And let’s pass House Bill 1637, authored by State Rep Steve Bartels, which establishes the Office of School Safety called for in my Freedom and Opportunity Agenda to protect our kids. 

And we can’t forget that education is also workforce development. 

There are programs around the state where students can get hands-on training in manufacturing skills, get engaged with Indiana companies that are hiring now, and even earn some money. Tonight in the audience we have two instructors from the 4T Academy program in southern Indiana, Rick Gilmore from Princeton Community High School and Gabe Golba from Bosse High School in Evansville. This program is a partnership between high schools and Toyota, and students have launched good-paying careers directly from the class. Thirty-eight 4T Academy students have been hired by Toyota in production roles and fifteen students have started careers as advanced manufacturing technicians. This is a model we should replicate across the state. Rick, Gabe, thank you for your work to teach real world skills and jump-start these students’ careers. 

Indiana’s future depends on how we educate the next generation. Let’s have a round of applause for our teachers and all the Hoosiers who have dedicated their careers to our students. 

As I conclude tonight, 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. 

Will we treat this moment as a plateau, or as a foundation to build something truly exceptional? 

Now is the time to be bold and think out of the box. 

We can do it through big ideas, collaboration, and above all: action. 

Thank you, and God Bless the Great State of Indiana.