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Local, state, and federal updates on all things policy at the Statehouse during the Special Session in this week's memo include:
- $740B Tax, Health, and Climate Legislation Heads to President Biden’s Desk
- July Inflation Numbers Plummet
- Indiana Governor Calls for Special Election for U.S. 2nd District
- New Standardized Test Scores Show Indiana Students Still Behind Pre-Pandemic Numbers
- Former IUPUI Chancellor Paydar Confirmed for Education Department Job
- CDC Relaxes Some COVID-19 Guidelines
- Indiana State Revenue Continues to Surpass Monthly Projections
- Falling Gas Prices Helping with Inflation Slowdown
- Important Dates
$740B Tax, Health, and Climate Legislation Heads to President Biden’s Desk
What’s new: On Friday, the U.S. House of Representatives passed a $740 billion tax, health care, and climate bill. The bill passed 220-207 with all Republicans voting against it.
The details: The largest spending provision allocates nearly $370 billion to combat climate change, including tax credits and funding for renewable energy, electric vehicles and energy-efficient home improvements, as well as incentives for companies to cut methane emissions.
It also:
- Extends enhanced Affordable Care Act subsidies.
- Allows Medicare to negotiate the prices of certain prescription drugs and requires drug companies to pay rebates for raising prices faster than inflation.
- Imposes a 15% minimum tax on corporations making $1 billion or more in annual profits and a 1% fee on stock buybacks.
- Invests $80 billion in the Internal Revenue Service to crack down on tax evasion by the wealthy and corporations.
What they're saying:
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In a speech on the House floor, Speaker Nancy Pelosi (D-Calif.) said “This landmark [legislation] that we send to the president's desk is a resounding victory for America's families starting at their kitchen table.”
On the flip side:
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House Minority Leader Kevin McCarthy (R-Calif.), in a floor speech, called the legislation tone-deaf. "They are choosing to spend the session by spending half a trillion dollars more of your money, raising taxes on the middle class and giving handouts to their liberal allies."
What's next: The bill will now goes to President Biden's desk for his signature. (Axios)
July Inflation Numbers Plummet
What’s new: In a recent update, the U.S. Labor Department reported that overall consumer prices rose 0% last month, and are up 8.5% over the past year. That compares to a 9.1% year-over-year reported in June.
By the numbers: Gasoline prices fell 7.7% in July, dragging down headline inflation. Other items with falling prices included used cars and trucks (-0.4%) and airfares (down 7.8%).
- But, rent prices kept rising, a major factor in stubbornly high underlying inflation. Renters faced a 0.7% rise in costs.
Yes, but: The Federal Reserve has indicated that intends to keep raising interest rates until there is clear evidence inflation is waning. Time will tell. (Axios)
Indiana Governor Calls for Special Election for U.S. 2nd District
What's New: On Tuesday, Governor Eric Holcomb signed an executive order calling for a special election to fill the vacancy for the remainder of Congresswoman Jackie Walorski’s term, who died in a tragic car accident two weeks ago.
State of play: A caucus of committee members called by the state chair for each major party will determine who will be nominated for the election. They have until August 26 to make their decisions. Candidates can file a declaration of candidacy with the Indiana Election Division and the chair of the party caucus if they want to run.
What's next: The special election will be held concurrently with the general election on November 8. (Fox59)
New Standardize Test Scores Show Indiana Students Still Behind Pre-Pandemic Numbers
What's new: A recent release of Indiana’s standardized test results show that younger students in the state have seen an improvement in their scores, but overall remain below pre-pandemic results - with this year’s results showing the state almost six percentage points under pre-pandemic rates.
Why it matters: According to data from the Indiana Department of Education Reading Assessment (IREAD), nearly one in five students have not mastered foundational reading skills by the end of third grade.
Results from 2021-2022 tests show:
- An 82% pass rate, with significant disparities among students of color.
- White students achieved above-average pass rates at about 87%.
- 64% of Black students had proficient reading skills.
What they're saying:
- Director of Assessment at the Indiana Department of Education (IDOE) said, “Students who are poor readers at the end of third grade are likely to remain poor readers throughout their life. They even are less likely to graduate on time or may never receive their high school diploma.”
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Indiana Secretary of Education released a statement saying, “We know that students first learn to read, and then they read to learn. It’s so important that educators, families and communities continue to come together to lead innovative, intentional efforts to make sure all students are able to read.” (IBJ)
Former IUPUI Chancellor Paydar Confirmed for Education Department Job
What's new: Nasser Paydar, former Indiana University-Purdue University Chancellor, has been confirmed as the new Assistant Secretary for postsecondary education for the U.S. Department of Education.
What they're saying: Cardona released a written statement saying, “It is with great excitement that I congratulate Dr. Nasser Paydar on his confirmation as assistant secretary for postsecondary education. Dr. Paydar brings to the U.S. Department of Education more than three and a half decades of experience as a university leader and educator, during which time he has demonstrated an unwavering commitment to creating accessible pathways to college and careers for students of all ages, abilities, and backgrounds.”
The details: Paydar spent more than 30 years in administrative roles for Indiana University, including leadership positions at IUPUI, Indiana University-Purdue University Columbus and IU East.
Padar was nominated by President Joe Biden, and will work under U.S. Secretary of Education Miguel Cardona. (IBJ)
CDC Relaxes Some COVID-19 Guidelines
What's new: On Thursday, the Centers for Disease Control and Prevention (CDC) relaxed many guidelines for COVID-19 - regardless of a person’s vaccination status.
The new guidance:
- Places the responsibility of risk levels on individuals, rather than businesses, governments, or schools.
- Treats a COVID-19 exposure in the same way regardless of whether the person exposed is vaccinated.
- No longer recommend case investigation and contact tracing, except in health care settings and certain high-risk congregate settings.
- Indicates the CDC’s focus will remain on protecting people at high risk for severe illnesses.
- No longer recommends screening testing of asymptomatic people without known exposures, except in certain high-risk settings like nursing homes and prisons.
- Removes a recommendation on “test-to-stay,” which was aimed at keeping children who were exposed to COVID-19 in the classroom as long as they had no symptoms and repeatedly tested negative.
What they’re saying: CDC Epidemiologist, Greta Massetti, released a statement saying, “The virus that causes COVID-19 continues to circulate globally. But importantly, the current conditions of this pandemic are very different from those of the last two years. This guidance acknowledges that the pandemic is not over, but also helps us move to a point where COVID-19 no longer severely disrupts our daily lives.” (The Hill)
Indiana State Revenue Continues to Surpass Monthly Projections
What's new: Indiana has continued to beat monthly budget projections, with revenues last month totaling nearly $1.5 billion. This was 5.1% higher than the December 2021 forecast and more than 11% higher than the same month last year.
The details: The Indiana State Budget Agency attributes timing changes in the reporting of collections from gaming taxes passed by the General Assembly this year, as well as better-than-expected sales tax collections, as key-factors in the increased revenue.
What's next: Because of this growth, two taxpayer refunds will have been issued to Hoosiers by the end of 2022: $125 Automatic Taxpayer Refund triggered last year and a $200 refund approved by the Indiana General Assembly in the recent special session are expected to arrive in a matter of weeks. (Inside INdiana Business)
Falling Gas Prices Helping with Inflation Slowdown
July's slowdown in inflation numbers stemmed from a multitude of things, including falling prices for gas.
Why it matters: Gas prices are nearing levels that are more historically normal relative to wages, creating a potential boost to the overall economy in the second half of the year.
By the numbers: To pay for a 15-gallon tank of regular gasoline required 2.4 hours of work at the average hourly wage for non-supervisory workers ($27.57/hour) in July.
The bottom line: It should hardly be surprising that overall GDP was depressed in the second quarter as gas prices crested. The reverse could prove true as the year progresses. (Axios)
Important Dates
- Wednesday, August 24th at 12:30pm - Administrative Rules Review Task Force
- Tuesday, August 30th at 10am - 21st Century Energy Policy Development Task Force
- Tuesday, August 30th at 10:30 am - Interim Study Committee on Courts and Criminal Code
- Tuesday, September 13th at 10am - 21st Century Energy Policy Development Task Force
- Tuesday, September 20th at 10:30 am - Interim Study Committee on Courts and Criminal Code
- Monday, September 26th at 10am - 21st Century Energy Policy Development Task Force
- Tuesday, October 4th at 10:30 am - Interim Study Committee on Courts and Criminal Code
- Wednesday, October 19th at 10am - 21st Century Energy Policy Development Task Force
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