Gov. Eric Holcomb calls for special session to give $1 billion to Hoosiers amid inflation

Gov. Eric Holcomb announced Thursday he plans to call lawmakers back into a special session this month to distribute $1 billion in tax relief to Hoosiers due to inflation.

Under his proposal, each taxpayer would receive about $225.

That's in addition to the $125 residents are currently receiving through the state's automatic taxpayer refund announced at the end of last year.

Related: Here's when Indiana's $125 will hit your account

“Hoosiers have real needs right now during this period of high inflation, from the gas pump to buying groceries, and everyone should benefit from the state’s success,” Holcomb said in a statement.

The special session also would open the door for lawmakers to pass legislation further restricting or banning abortion in Indiana if the Supreme Court overturns some or all of the protections under Roe v. Wade. Republican lawmakers have signaled they would examine the court's eventual ruling before deciding what changes to make to law.

It's unclear when such a ruling would be released, though a draft report leaked earlier this spring suggested they may overturn the landmark ruling.

In a statement, the governor's office said lawmakers could decide if they wanted to address other issues at the special session.

"A special session is needed for the inflation relief plan, but it’s up the legislators on what other issues they would want to address," the statement read.

Democrats had called for tax relief at the gas pumps

The move for a special session for the tax refund comes after Indiana Democrats pushed for Holcomb and Republicans to pause collection on the state's gas taxes — which are tied in part to inflation — to give residents financial relief amid soaring gas prices.

Despite the challenges of the pandemic, the state's finances have so far exceeded expectations for the second fiscal year in a row: 11 months into the current 2022 fiscal year, the state's revenues are $1.075 billion over forecast, according to the governor's office. The revenues for May alone were $209 million over forecast.

Sen. Mike Braun: FEC: Braun campaign finance violations rise to civil, not criminal level

“I’ve met with Speaker Huston and Senator Bray and have asked them to discuss getting a billion dollars back into Hoosier hands with their colleagues,” Holcomb said in a statement. “I’ve committed to work with them to call a special session before the end of June to take action to align this second round of returns with our current ($125 automatic taxpayer refund).”

House Speaker Todd Huston, R-Fishers, and Senate President Pro Tempore Rodric Bray, R-Martinsville, signaled support for a special session to administer refunds. Spokespeople for their offices did not return an emailed request for comment.

"By issuing another round of automatic taxpayer refunds, we can provide quick and substantial relief while maintaining the state's prudent reserves and providing budget flexibility moving forward," Huston said in a statement. "We'll work with the governor and our Senate colleagues on scheduling a special session, so we can return to the Statehouse and do what's right by Hoosiers."

Here's how the tax funds would be sent to taxpayers

If approved, residents would see the second $225 deposit in their bank accounts in a manner similar to the first. Those receiving paper checks will receive a total of $350 for individual taxpayers, reflecting both the $225 and the $125 payments. Those filing jointly will receive double that amount at $700.

In a statement, the Indiana Democratic Party said the special session only adds to Democrats' plan to address rising costs across the state.

"It’s encouraging to see Gov. Holcomb and Indiana Republicans finally realize that there are ways the state government can combat global inflation," executive director Lauren Ganapini said in a statement. "That said, it shouldn’t have taken this long to get the Republicans to actually act and produce what looks like another bare-minimum Band-Aid for Indiana’s long-term problems."

The Concerned Clergy of Indianapolis and other community groups said Holcomb’s plan is one that addresses equality and not equity, noting concern for African-American, Latino and poor white residents.

“The Governor’s approach is one of equality that leaves minorities behind when this is an opportunity for the governor and elected officials to do equity and allow Hoosiers who are suffering the most get more,” the groups said in a statement. “Obviously, there is an income level that does not need the refund. Those dollars should be given to those who are suffering the most.”

Call IndyStar reporter Amelia Pak-Harvey at 317-444-6175 or email her at apakharvey@indystar.com. Follow her on Twitter @AmeliaPakHarvey.

This article originally appeared on Indianapolis Star: Indiana special session: Hoosiers could get $225 because of inflation