State leaders ended the 2026 fiscal year with big news: a $1.86 billion surplus and $4 billion in reserves. These amounts are up 174 percent and 60 percent from last year. Gov. Mike Braun is highlighting the benefits this could bring when lawmakers meet in January to create a new two-year state budget, with infrastructure funding already a main topic.
“It gives us the option on difficult places like infrastructure, reining in healthcare costs, early childhood learning, to invest, give some relief to taxpayers,” Gov. Braun said after the closeout.
He explained that these increases were possible in part because his administration reorganized state government and maintained steady revenue collections.
The Build Indiana Council team is already explaining why the 2027 legislative session will be important for Indiana’s roads and bridges.
This comes as the state nears the 10-year anniversary of the last major update to infrastructure funding in 2017, and as Gov. Braun’s administration still awaits a final decision from the federal government on whether Indiana can move forward with a plan to toll portions of I-70.
All ideas for sustainable infrastructure funding are being considered. With many new lawmakers expected in November, we will meet with stakeholders to share our input on key issues and explain the challenges our industry has faced.
On another issue we’ve been tracking, Indianapolis Mayor Joe Hogsett vetoed a plan passed by the Indianapolis City-County Council this month to raise funds to meet a local match requirement to access additional funding set aside by the General Assembly for infrastructure improvements in the capital city. The council proposed increasing vehicle registration fees, but Mayor Hogsett nixed it due to affordability concerns.
“Throughout this conversation, one reality has been impossible to ignore: Many households are already stretched to the limit,” Mayor Hogsett wrote in explaining his decision on X.
Council President Maggie Lewis said the council is considering its next steps in light of the veto.
We’ll keep our members updated as the situation progresses.
