A panel of state legislators spoke Saturday to constiuents at Fusion 54 during a slated breakfast event sponsored by the Crawfordsville/Montgomery County Chamber of Commerce. Many in attendance were concerned and curious about Senate Bill 1.
The panel consisted of State Senators Brian Buchanan (District 7) and Spencer Deery (District 23) along with State Representatives, Jeff Thompson (District 28), Matt Commons (District 13) and Beau Baird (District 44).
In his update, Thompson explained the impact of Senate Bill 1, which focuses on property tax reform. He said the bill will result in about two-thirds of homeowners paying less in property taxes in 2026 compared to 2025, even as local governments receive more revenue, estimated to be significantly higher than what the state will provide. This is accomplished by maintaining levy levels while providing credits directly to homeowners.
Thompson notes that without the bill, the vast majority of homeowners, over 90%, would see a tax increase next year. The bill also reduces Local Income Tax capacity by nearly $2 billion and lowers the maximum LIT rate from 3.75% to 2.9%. He argued this legislation begins a long-term shift toward a property tax system where changes in tax rates result in corresponding changes in what people actually pay, something he says currently isn’t happening. Lastly, he said the bill increases transparency, preventing the current system where adjusting tax rates can unintentionally shift money between local government units or alter LIT distributions.
Crawfordsville Mayor Todd Barton raised concerns about the financial projections tied to Senate Bill 1, questioning the accuracy of the figures being used to support the legislation. Barton said financial advisors from two of Indiana’s top firms have reviewed the bill and found that “the math does not add up.” He pointed specifically to uncertainty around income tax impacts for municipalities, noting that cities like Crawfordsville currently have no way to isolate income data for residents within city limits. Barton urged lawmakers to consider that local governments are “flying blind” as they attempt to plan for the future, especially in growing communities where the financial stakes are high.
Crawfordsville resident, Leann Parrish, also addressed Senate Bill 1 directed at Thompson.
“As a member of this community, I could get the maximum property tax discount of $300, and that is going to have very little impact on my everyday life. During the summer, that is less than I pay for one week of child care for my two children,” she said.
“My children attend Crawfordsville schools, and Crawfordsville schools over the next three years could lose nearly $2 million,” Parrish continued. “Senate Bill 1 will negatively impact our schools and our local libraries. As a parent, that is much greater of a concern to me than getting $300 back in property taxes.”
Thompson responded that while federal cuts are uncertain and shouldn’t drive decision-making, there will likely still be an increase in funding, just not a big one.
During the breakfast the representatives also covered a range of issues from education and agriculture to tax reform and utilities.
Baird discussed seven bills, including House Bill 1425, requiring clear labeling of lab-grown meat, and House Bill 1490, aimed at improving dental care for racehorses. He also highlighted legislation to support foreign-trained physicians in rural areas (HB 1555), prescribed burns for forest health (HB 1557), student absences for FFA and 4-H events (HB 1660), cybersecurity reporting for water facilities (SB 459), and oversight of the grain indemnity fund (SB 461).
Commons reported on bills addressing school safety (HB 1016), partnerships with faith-based pre-K providers (HB 1102), and water resource oversight (SB 4, SB 28). He also noted a bill supporting Indiana’s trade offices is advancing in the Senate.
Deery focused on teacher shortages and public health. He discussed SB 255, creating a certification path for STEM majors to teach, and SB 249, which would allow schools to pay high-need teachers more before negotiating salary schedules. He also introduced a bill expanding ambulance transport options to include mental health and urgent care facilities.
Buchanan echoed Thompson’s support for SB 1, which proposes a shift to a rate-based property tax system to improve local transparency. Buchanan said the legislature has worked on the issue for two years. He also addressed energy concerns, supporting a long-term shift from coal to small modular reactors due to rising federal regulations and aging infrastructure.
