The Indiana General Assembly has approved the pending two-year budget for the state. That approval includes a two-dollar a pack increase in cigarettes—the first trax increase in 17 years. It was a move that was suggested by Legislative Democrats and others.
The extra revenue from that tax will be filtered into Medicaid. The budget takes into consideration a two and a half billion dollar projected shortfall in state revenue. That means all state departments will make at least five percent cuts, with the Department of Public Health taking a 60 percent reduction.
Even though the cut to the Health Department seems severe, Indiana House Speaker Todd Huston believes the Department can still do its work, regardless of the massive decrease.
The new budget also includes slight increases in K to 12 education spending, with Medicaid spending staying at current levels. Those two areas make up a combined 69 percent of the state’s budget.
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