These days we’re hooked on two dramas playing out in real life: the IU Hoosiers’ cinematic football turnaround that has led them to Monday’s national championship game, and the lightning-paced legislative action unfolding at the Statehouse.  

To borrow a phrase from IU Coach Curt Cignetti, both “would be a hell of a movie.” But if the former resembles a remake of the basketball classic Hoosiers, the latter is more like Rocky—one battle after another, to add yet another movie reference. 

Whether you’re a sports fan, movie buff, policy nerd, or some combination, break out the popcorn and read on. 

On the Marquee  

Homelessness remains a top concern in Indianapolis —for the community broadly and especially for businesses located in and around Downtown. SB 285 is one of the session’s most closely watched – and hotly debated – bills. Authored by Republican Senators Cyndi Carrasco and Eric Koch, the bill would establish a statewide prohibition on unauthorized camping on public land, with a structured process that includes a warning, an offer of transportation, and – if noncompliance continues – a Class C misdemeanor. 

SB 285 also requires the Indiana Housing and Community Development Authority to set eligibility criteria and requires organizations receiving federal Continuum of Care funding to report on their efforts annually. It also requires law enforcement agencies to report camping-related enforcement data to the state – provisions intended to improve transparency and help policymakers better understand what’s working to reduce unsheltered homelessness. 

Supporters argue the bill resembles a well-intentioned Coach Carter: creating firm but clear expectations for public space management will ultimately help communities address safety, health, and economic impacts. But critics argue it could strain local services, courts, and reporting requirements without adding funding – and focuses undue attention on short-term cleanups, rather than long-term housing solutions. 

🤔Indy Chamber’s Take: We support the goal of ensuring no one has to sleep outside in Indianapolis and that areas like the downtown of our capital city are safe and welcoming to all. We believe a clear prohibition on public camping can be part of achieving this – especially when paired with strong outreach and housing pathways like Streets to Home Indy. We also support the bill’s emphasis on diversion and services rather than automatic criminalization, and we see value in better statewide data and accountability around homelessness outcomes. 

At the same time, we have concerns about any provisions that create barriers to efforts like Streets to Home being successful, and we want to ensure that law enforcement is given the guidance and protection they need to be critical connectors of unhoused individuals to services. Enforcement tools should be used to support pathways to housing and treatment. 

We’ll continue to engage as the bill moves forward, with a focus on making sure Indiana gets both sides of the equation right: clear expectations for public spaces and strong, well-resourced routes off the street and into stability. 

Going Frame by Frame

We told you last week about HB 1423, authored by Republican Rep. Bob Behning, which would create a new Indianapolis Public Education Corporation (IPEC) to manage facilities and transportation for all schools within Indianapolis Public Schools (IPS) boundaries while creating a common system of accountability for schools. The corporation is designed to ensure more consistency for families and schools in what has become a choice-rich but fragmented landscape of public charter, district-run, and Innovation Network Schools. The Indy Chamber supports the measure to ensure students have safe buildings, reliable transportation, and clear accountability – no matter which public school they attend. We also believe the bill will streamline systems to create greater efficiency for taxpayers. But the plan is nuanced – and novel – and some key details need to be resolved before the IPEC is ready for its premiere.  

🤔Indy Chamber’s Take: We celebrate the progress and look forward to staying engaged behind the scenes as the final cuts of the bill come to life. This legislation and the new corporation have the potential to be game-changing for families, schools, and Indianapolis, creating a more efficient and collaborative system. 

A League of Their Own  

Bear with us as we reminisce about A League of Their Own, a cult sports classic following the formation of the All-American Girls Professional Baseball League during World War II. The movie shows how different players and teams can thrive when given common rules, infrastructure, and a chance to compete on the same field. 

In a sense, that’s what HB 1315 is seeking to do in township government in communities meeting certain population and service criteria. The bill, authored by Republican Rep. Alaina Shonkwiler, is aimed at streamlining what lawmakers see as an outdated structure created for a more rural Indiana. Under the proposal, townships that do not operate fire departments, have fewer than 6,700 residents, and fail to meet certain thresholds for providing emergency financial assistance would be required to merge with another township or reorganize under a city or county. Townships that are largely surrounded by cities – at least 80% of their land and 50% of their population within city limits – would have their functions transferred to the city, unless they operate a fire department. 

Importantly, the bill pushes local governments toward consolidation, clearer accountability, and fewer overlapping layers, while still giving them a window to shape how that consolidation happens. 

Like A League of Their Own, independent teams don’t disappear, but they’re brought under one league structure with common rules, shared infrastructure, and centralized operations so the whole system works better. Each township gets a chance to choose its path and help shape the transition – but if it doesn’t step up to the plate in time, the league steps in and assigns the framework.  

Rep. Shonkwiler said the goal is to reduce overlap in services and ensure taxpayer dollars are spent more efficiently, especially where townships no longer provide core services like fire protection.  

Opponents, including township officials, counter that townships provide essential services such as emergency assistance for housing and utilities, cemetery maintenance, and in some cases fire protection and parks. They argue consolidation based on population thresholds risks disrupting services and representation, and they favor an alternative approach that would rely on performance metrics.  

Real life example: In Johnson County, three previously separate townships – Franklin, Union, and Needham – merged into a single township effective January 1, 2022, creating what’s known locally as Franklin-Union-Needham Township (“FUN”). All three township boards voted unanimously in favor of the merger in 2021, and the consolidated entity now serves nearly 30,000 residents and more than 12,000 households, making it the first township merger of its kind in Indiana. The consolidation was pursued to deliver services more efficiently, reduce duplication, and simplify interactions for residents – for example, eliminating confusion about which township office to visit for assistance and reducing redundant administrative costs. 

👀What to Watch: HB 1315 advanced out of the House Committee on Local Government and now heads to House Ways and Means for a review of its fiscal impact, with further debate expected as competing proposals move forward. 

🤔Indy Chamber’s Take: We’ve been supporters of eliminating township government writ large since the blockbuster Kernan-Shepard local government reform report was released in the early aughts. So, two thumbs up and a Critic’s Choice Award to this more balanced, nuanced approach. 

🏆And the Oscar Goes to…Rep. Alaina Shonkwiler, who has been equal parts courageous and ambitious in her efforts to take on this meaty topic early in her Statehouse career. 

Fan Favorite: The Sequel 

“Affordability” buzzed around the Statehouse again this week, and this time, the messenger was Gov. Mike Braun. He used his State of the State address to spotlight affordability, framed rising costs as the defining challenge for Hoosiers, and positioned his administration’s work as focused on making Indiana a place where “your dollar goes further.” 

Rather than unveiling a formal legislative agenda, Braun signaled support for bills already moving through the General Assembly. These include proposals to curb utility rate hikes, ease housing regulations to increase supply, limit cell phone use in schools, restrict public camping, and make it easier to hold some accused criminals pre-trial. On childcare, Braun acknowledged affordability challenges but pushed major action to the 2027 budget session, suggesting future solutions should involve employers having “skin in the game.” 

Braun also highlighted what he called tangible results: a property tax plan projected to save taxpayers $1.5 billion over three years, $465 million in Medicaid savings from tighter oversight, growing GDP outpacing the national average, improved reading scores, a record-high graduation rate, and continued job growth.  

📣 Critics’ Review: Democrats said Republicans are only now embracing affordability after years of resisting similar ideas. House Democratic Leader Phil GiaQuinta said the governor is reacting to growing economic pressure on families, while Senate Democratic Leader Shelli Yoder criticized the administration’s childcare policies, calling childcare “economic infrastructure,” not a side issue. House Speaker Todd Huston countered that Republican efforts have focused on reducing regulations and expanding supply rather than increasing government spending. 

Coming Soon to a Theater Near You  

Since we’re already writing the narrative for the IU football comeback movie, it should be no surprise that we’re also looking ahead to next week’s session calendar. Expect another busy week with multiple hearings on bills we’re following, including:  

Supporting Cast 

We’re also watching these bills that have implications on the broader policy landscape: 

That’s a wrap on today’s production. We’ll see you back here next week, and in the meantime, happy watching – on the field and in the Statehouse! 

Friday Night Lights at the Statehouse

Good Friday afternoon, and welcome to the Indy Chamber’s first Legislative Update of 2026!

We’re counting the hours until IU plays Oregon in the Peach Bowl while looking back on a week with no shortage of action at the Statehouse. On both fronts, it’s fair to say, go Hoosiers!

Statehouse observers predicted a lower-activity legislative session this year following a contentious December redistricting fight. Instead, the first week of the 2026 Indiana General Assembly has offered a packed playbook, showing that lawmakers aim to tackle weighty issues – from housing to taxes and childcare – even in a short session.

We’re pleased to see that many of these issues line up with the priorities in our 2026 legislative agenda: Grow Our Economy and Build Our Talent.

So, put on your cream and crimson and read up on what happened in the arena this week!

The Lineup:
Quarterback (Affordability)
Second-Half Adjustment (Property Tax Updates)
A New Playbook (Economic Development)
Opening up the Field (Childcare) + Leveling the Playing Field (K-12 Education)
Building the Bench (Work-Based Learning Liability)
Celebrating a Win! (Cigarette Tax Revenue)

Quarterback

If this session had its own Fernando Mendoza, it would unquestionably be the topic of affordability – an issue  linking several policy matters together and driving the overarching Statehouse agenda. Like the beloved Indiana University quarterback, this theme has been broadly embraced by Indiana Republicans and Democrats.

⬆️The Upshot: Hoosiers want their elected officials to focus on kitchen-table issues, and the legislature seems to be listening, judging by the early action in session. Here’s where the affordability theme is showing up. 

👀What to Watch: HB 1001 will be heard in the Local Government Committee, and HB 1002 will be heard in Utilities, Energy and Telecommunications, both on Tues., Jan. 13.  

🏆If these plays can make it into the endzone, affordability may become this session’s Heisman Trophy recipient.  

Second-Half Adjustment

As policymakers seek to make life more affordable for their constituents, there’s a need to recognize that local government services go hand-in hand in helping communities thrive. While stability or even reduction in property tax payments is important to residents, it must be balanced with governments’ ability to provide critical services, such as public safety and infrastructure. 

SEA 1, which passed last session, will reduce property taxes for homeowners and cut revenue for local units of government.  

HB 1259 attempts to help local governments by providing flexibility to recoup some of their lost funding through additional local income tax (LIT). Under the bill authored by Republican Rep. Jeff Thompson, the House’s Ways and Means Committee Chairman, cities and towns with at least 3,500 residents that already have a municipal LIT of 1.2% may increase that rate to up to 2.9%. The bill also would allow counties to adopt a tax rate to distribute funds to school corporations. And, it contains a clarifying provision that if local governments do not adjust their LIT rate annually, the rate will default to the minimum amount required to pay debt service. Beginning in 2030, counties’ and municipalities’ tax rates must be renewed every four years, which is a partial win for the Chamber and other local government advocates pushing for increased consistency with local income tax rates.  

 👀What to Watch: HB 1259 is being amended and will be heard in House Ways and Means in the coming weeks.   

A New Playbook

Indiana is seeking to shift its economic development muscle from the state to regional entities. House Bill 1101, authored by Rep. Dave Heine, a Republican representing Allen County, would divide Indiana into 15 economic development regions and create a regional commission in each one to coordinate local economic development efforts. Each commission would include representatives from across the region and would be responsible for developing a shared economic strategy. The commission would also appoint or designate a lead organization to carry out that plan.   

🤔Indy Chamber’s Take: We are enthusiastic supporters of regions forging their own economic development strategies and look forward to being a strong partner in this discussion. We do believe there will be a robust discussion on the mechanics of this bill, including who sits on these regional commissions – for instance, we believe private sector representation (not currently required in the bill) is essential for the formation of economic development strategy. Also, regions need flexibility to design governance structures that fit their local realities. This is especially true in Central Indiana, which already operates under unique statutory frameworks. 

🏈In Football Terms: Expect plenty of back-and-forth before the final whistle. 

📋Also of Note: We’ll be watching HB 1397 and SB 264, which seek to reform two of the state’s most prominent economic development tax credits—the redevelopment tax credit and the EDGE tax credit—to ensure they’re maximized for our state’s economic competitiveness. 

Opening up the Field + Leveling the Playing Field

Childcare: State of Play 

Indiana’s childcare system is under strain as federal pandemic-era funding has ended, state subsidy expansion has paused, and providers are responding to cuts and uncertainty. This has created long waitlists, led to provider closures, reduced access, and exacerbated affordability challenges – with ripple effects across the workforce and economy. Our members are feeling this pain and responded to our 2025 policy survey identifying access to childcare for employers as a key issue. 

Getting More Families in the Game 

HB 1149 will not fully solve the full childcare access crisis, but it’s a meaningful step. The bill would expand the state’s existing law around Scholarship Granting Organizations, or SGOs, which currently enable donors to provide grants to offset tuition for pre-K through grade 12 education for income-qualifying students in exchange for a 50% tax credit. The new bill, authored by Rep. Dave Heine, would extend the law to qualified early childhood education providers, which would have to be certified through the Indiana Department of Education. School corporations that provide early childhood education would be eligible to participate, and they would have to enable students who do not reside within their boundaries to access their programs.  

🤔Indy Chamber’s Take: This bill marks progress, and we’re supportive of measures that make childcare access easier and more affordable. 

👀We’re Also Watching: SB 66, which tasks the state’s Early Learning Advisory Committee with putting in place kindergarten readiness indicators to align early care and learning with academic readiness.   

K-12: State of Play 

Families in Indianapolis have a diverse array of options for where to send their children to public schools. Within Indianapolis Public Schools (IPS) boundaries, there are not only various models of schools, but also different governance structures: public charter, district-run, and a hybrid model called Innovation Network Schools (“innovation schools” for short). 

These options have created opportunity, but also operational complexity. Today not all schools within IPS boundaries have access to facilities and transportation, and myriad different systems exist to provide those services for students. The result is both inconsistency and inefficiency in the delivery of services. 

Uniting the Field 

HB 1423 would create a new Indianapolis Public Education Corporation (IPEC) to manage facilities and transportation for all schools within IPS boundaries. The corporation would include 9 members appointed by the Mayor of Indianapolis with an equal distribution of board members from IPS, public charters, and the residents at large. It would have the authority to levy taxes and would be tasked with creating a common system for school accountability, a feature that’s currently lacking from Indianapolis’ landscape.   

HB 1423, authored by the House Education Committee Chairman Rep. Bob Behning, follows recommendations in December from a task force of civic leaders, the Indianapolis Local Education Alliance. 

🤔Indy Chamber’s Take: We see this bill as an important step toward financial responsibility and public trust. It would ensure students have safe buildings, reliable buses, and clearer accountability—no matter which public school they attend. By handling these big, complex operations at the system level, schools and educators can focus on what matters most: teaching, learning, and student support. 

Schools must be fully funded, especially for students with greater needs—but in today’s high cost-of-living environment, taxpayers are right to expect that existing education dollars are being used efficiently before being asked for more. HB 1423 helps create that discipline by reducing duplication, improving coordination, and increasing transparency. 

In short, the Chamber believes HB 1423 moves the conversation away from “district versus charter” and toward a single commitment to students, with smarter operations, clearer accountability, and a more sustainable system for the future. 

📣We’ll Be Sharing These Key Points: On Monday, Jan. 12, when HB 1423 is scheduled to be heard in the House Education Committee.  

Building the Bench

The Indiana Career Apprenticeship Pathway (INCAP) is a new, statewide program that lets high school and adult learners gain real, paid, on-the-job experience in high-demand careers—while helping employers build a stronger workforce. The Indy Chamber supports this initiative and its goal of reaching 50,000 Hoosiers by 2034 as it aligns with our key priority of building our region’s talent. 

But there’s a roadblock at the line of scrimmage. 

Research commissioned from the Indiana Fiscal Policy Institute shows that some employers hesitate to participate because of workplace liability concerns related to employing youth under 18. The Indy Chamber supports putting clear guidelines in place to address these concerns and ensure employers know the rules of the game so they can engage.  

HB 1098, authored by Republican Rep. Matt Commons, takes a step toward addressing these liability concerns. The bill aims to reduce uncertainty by clearly assigning liability when a student is placed with an employer through an intermediary. It puts primary responsibility for legal and administrative claims on the intermediary, rather than leaving roles ambiguous. It also protects employers from insurance discrimination by prohibiting insurers from denying coverage, canceling policies, or charging higher rates simply because a worker is under 18 or enrolled in a work-based learning program. Any insurance decisions must be based on objective, risk-based criteria, not age alone. 

🤔Indy Chamber’s Take: We applaud attention to this issue, but we believe employers should maintain liability, not intermediaries, as they are used to assuming the risk and intermediaries are nonprofits with limited capital. With this liability, we also advocate for guardrails: 

Celebrating a Win!

Like you, we’re hoping for victories on the field tonight and beyond for the Hoosiers, but in the meantime, let’s celebrate another substantive win for our state.  

Last session, you helped advocate for an increase to the state’s cigarette tax, and lawmakers adopted a $3 per pack tax rate that went into effect on July 1. 

The cigarette tax increase is bringing in money than expected—about $152 million above projections and nearly $149 million more than last year, more than doubling revenue from this source in a year, according to the Indiana Fiscal Policy Institute. That is one factor contributing to the state collecting about $422 million more than was forecast through November 2025 – and $912 million more than this time last year. 

Even more important, cigarette use dropped by about 40% in the first three months after the tax increase went into effect. That’s a reason to celebrate.  

Until next week, go Hoosiers!