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Indiana’s 2025 Legislative Session: A Tipping Point for Gary

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The 2025 legislative session in Indiana is one of great consequence for the residents of Gary, a city poised to experience substantial impacts from a variety of bills under consideration. Halfway through the session, a slew of important bills have progressed, moving closer to being enacted into law, while others fell by the wayside during committee deliberations. As the session resumes on March 3, focus is shifted to the outcomes of key proposed legislations with significant implications for Gary. This includes a look at bills that are inching closer towards legal status, and those that, if passed, would have brought noteworthy changes for the city.

House Bill 1001 pertains to the state budget, deciding major allocations including universities, Kentucky schools, Medicaid, alongside other significant state services. Also encapsulated in this bill are structural amendments to government bodies, which hold substantial implications for Gary. Notably, the bill carries a proposal to reconfigure the control of the Gary/Chicago Airport Authority Board. This would cut down on the number of board members appointed by the Mayor of Gary while expanding representation for Crown Point, Michigan City, and the Northern Indiana Commuter Transportation District. Such a shift could potentially undermine Gary’s authority over airport-related decisions and regional economic growth.

Senate Bill 2 deals with Medicaid Eligibility, introducing comprehensive reforms to Medicaid in Indiana by proposing a membership ceiling for the Healthy Indiana Plan (HIP) — the local iteration of Medicaid expansion — of 500,000 members. Given that HIP currently covers around 700,000 residents, this membership cap could potentially strip hundreds of thousands of Indiana residents of coverage. This bill also proposes employment prerequisites for acquiring HIP eligibility. Considering that more than 40% of Gary residents rely on Medicaid, as per U.S. Census Bureau data, this bill could considerably impact the healthcare of the city.

Another crucial legislation is House Bill 1095, designed to extend the Indiana Crime Guns Task Force to encompass Lake County. At present, the task force, which collaborates closely with federal and state officials to track firearms utilized in statutory offenses, operates across nine central Indiana counties with a uniform strategy to mitigate violent crime. Gun violence remains a pressing issue in Gary. The proposal comes in response to the 65 homicide cases carried out by the Lake County Coroner’s Office in 2024, the bulk of which happened within Gary.

House Bill 1292 advocates for the establishment of the Northwest Indiana Professional Sports Development Commission; a body tasked with devising a strategic plan to entice professional sports teams, including potentially, the Chicago Bears, to make the leap to the region. The plan encompasses exploring stadium development, devising economic incentives, and optimizing regional benefits that could position Northwest Indiana as an attractive destination for major sports franchises. The commission’s creation could significantly boost economic activity, tourism, and job creation in Gary and across the region.

House Bill 1448 addresses an administrative error made by the state comptroller, which led to Gary inadvertently receiving tax revenue meant for Michigan City and East Chicago. To rectify this mishap, the bill mandates Gary to refund the undue $12.3 million procurement, which dates back several years. According to the proposed reimbursement schedule, Gary would need to disburse $5 million this year, with subsequent payments due in the years ahead.

The potentially disruptive House Bill 1136 proposes that school districts, where less than half the residing students are enrolled in public schools, must transform their remaining schools into charter schools by 2028. This bill was viewed with great concern by Gary residents and city leadership, as it directly threatens the future of public education in Gary. Consequence of this legislation would compel schools in Gary and other districts, including Indianapolis Public Schools, to make the transition to charter schools. This implies the loss of local control over public education.

Senate Bill 235 focuses on halting the state’s expenditure on diversity, equity, and inclusion (DEI) programs within state agencies, public educational establishments, and health professional licensing boards. As Indiana’s city with the highest percentage of Black residents, Gary has much to lose with the cessation of funding, programs, and initiatives related to DEI. These not only support educational pursuits and workforce development but also ensure access to health care. The bill could mean disruptions to funding streams benefiting the city and its inhabitants, although the extent of the impact remains uncertain.

Lastly, Senate Bill 1 intends to bring relief on property taxes. Among its many provisions, the bill outlines tax credits for first-time homeowners and orders the Department of Local Government Finance to maintain and develop a portal for property tax transparency. Given the critical dependence of the city on property tax funds for providing vital city services, significant reductions to property taxes could place the city in a precarious financial position. The Governor has already indicated his dissatisfaction with the bill as he believes it fails to deliver on his promise of substantial tax cuts during his campaign.