University of Indianapolis students Madison Riley, left, and Sam Hunt protest Senate Bill 10 outside the House Chamber on Tuesday, April 1. Photo by Whitney Downard, Indiana Capital Chronicle.

News Release

INDIANAPOLIS — A rousing debate over college students voting in Indiana punctuated legislative action Tuesday.

Other topics ran the gamut, from tax cuts to water resources.

The voting measure, Senate Bill 10, would no longer allow students at Indiana’s public institutions to use their college IDs as proof of identity at the polls. But the reason seemed unclear — as sponsor Rep. Kendell Culp, R-Rensselaer, continually referred to “concern” that college students aren’t residents.

Rep. Kendell Culp, R-Rensselaer, stands in the House chamber before session begins on Friday, March 8, 2024. Photo by Leslie Bonilla Muñiz, Indiana Capital Chronicle.

But Rep. Matt Pierce, D-Bloomington, noted there is an entirely different part of law that governs residency and voter registration. The bill doesn’t impact that law.

Pierce and others noted that most college IDs meet the four requirements in state law: to have a name, photo, expiration date and to be issued by a state or federal entity.

Rep. Chris Campbell, D-West Lafayette, observed that U.S. passports are allowed as proof of identity at the polls, but don’t have addresses or even a state of residency on them.

But Rep. Matt Lehman, R-Berne, held up his driver’s license and listed things Hoosiers can’t do without it: buy alcohol, some cold medicine, fly on a plane.

Non-drivers can also obtain state identification cards.

The bill passed 67-24 and now returns to the Senate.

Progress On Income Tax Cuts

Hoosiers could see upcoming cuts to the state individual income tax rate under a different measure approved 74-18 in the House.

Senate Bill 451 would drop the rate by 0.05% beginning in 2030, if state general fund revenue collections exceed 3.5% growth in each of the four preceding fiscal years. The next year’s revenue forecast also must be at least 3.5%.

The reductions would continue in every even-numbered year through 2040.

Current law is phasing Indiana’s flat income tax rate down from 3.05% in 2024 to: 3.0% in 2025, 2.95% in 2026, and 2.9% in 2027 and years thereafter.

Each 0.05 percentage point reduction of tax rate would result in a decline of income tax revenues between $150 million to $200 million annually, according to a fiscal analysis for the legislation.

“It’s a hard bar to cross, but it would occur in those cases where state revenue is really growing,” said Rep. Jeff Thompson, R-Lizton.

He added that “we gain as a state when we do this” because it attracts business and residents.

Rep. Ed Soliday speaks before a committee on Thursday, March 27. Photo by Leslie Bonilla Muñiz, Indiana Capital Chronicle.

Rep. Greg Porter, D-Indianapolis, said Indiana’s coffers have already lost $6 billion since 2015, when lawmakers started slowly reducing the rate. The bill would mean billions more in revenue gone.

“The human existence is all about opportunity cost. When we forgo billions of dollars, we are making a decision to disinvest in the future,” he said.

Porter noted the state could afford things like a fully funded statewide Pre-K program or subsidies for paid family leave and child care if taxes weren’t continually cut.

The bill was changed in the House, meaning the Senate must accept the changes before it goes to the governor.

House OKs Economic Development Reforms

Transparency and entrepreneurship additionally highlighted a separate bill also passed in the House, on an 87-4 vote.

Senate Bill 516 establishes an office for entrepreneurship and innovation, an agenda item for Gov. Mike Braun.

But it also holds provisions taking aim at the IEDC, which has faced years worth of backlash from lawmakers and constituents alike over its secretive approach to economic development efforts like the Limitless Exploration-Advanced Pace or LEAP District.

The legislation would require the quasi-public agency to tell local units of government and the State Budget Committee about acquisitions of more than 100 acres — whether it’s bought in one or multiple transactions — at least 30 days before those purchases close.

The bill also tasks the IEDC and the executives of communities that host innovation development districts — like one within LEAP — with annually compiling reports about the districts’ activities over the last calendar year.

And it lists what would be included: revenue received, expenses paid, fund balances, debt details, information on parcels within tax increment financing districts and the amounts locals receive in revenue-sharing agreements. The reports would go to the community’s fiscal body and to the Indiana Department of Local Government Finance.

The Senate has to accept changes to the bill or send it for final negotiations.

Bipartisan Support For Water-Related Measures

The House unanimously approved two other bills dealing with water withdrawals.

Senate Bill 4 would require that developers of long-haul water pipelines — over 30 miles long and transporting more than 10 million gallons a day — must go to the Indiana Utility Regulatory Commission and seek certificates of public convenience and necessity.

There are also strict permitting requirements for transferring water from one water basin to another.

Senate Bill 28, dealing with “significant” groundwater withdrawals of more than 100,000 gallons of water a day, also passed easily.

Rep. Shane Lindauer, R-Jasper, said the legislation is intended meant to head off disputes when water withdrawals might cause nearby well failures as the state continues to pursue water-intensive industries.

Both bills were changed in the House, so the Senate must accept the changes before they go to the governor.