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Indiana budget public testimony raises concerns about future of Main Street Program

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INDIANAPOLIS — State Lawmakers are working to pass a balanced budget. It comes at a time when the state is expecting the budget to be tighter than normal.

Public testimony at the Statehouse on Wednesday revealed a wide range of concerns from Hoosiers. Among the topics discussed were health care, tax cuts, and the potential impact of budget cuts on the "Indiana Main Street" program.

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Advocates from several smaller rural communities voiced their apprehension about the program, which they say will face staffing reductions under the current budget proposal that slashes $500,000 from the Office of Community and Rural Affairs (OCRA).

“Without the staff, you don’t have the technical assistance, you don’t have the capacity building services; it basically guts the program. It’s a small amount of money at $500,000, but it is key to this program within the Office of Community and Rural Affairs,” Marsh Davis, president of Indiana Landmarks, said.

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The Indiana Main Street (IMS) program has shown to be a beneficial resource for rural communities.

In 2024 alone, the program facilitated the opening of 143 new businesses, resulting in the creation of 196 full-time jobs and 126 part-time jobs. It also supported 196 rural property improvement projects and 179 public improvement projects, yielding a total of $27 million in public investment and $38 million in private investment.

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“The Main Street network is important to help communities learn from one another. The economic impact in just one community is huge in comparison to the state budget, and the IMS staff are essential to make that happen,” Danny Causey, executive director of Discover Downtown Franklin, said.

The IMS program, housed under OCRA, provides training, technical assistance, and implementation grants to a network of 108 communities working to revitalize rural downtowns.

While lawmakers did not vote on the budget today, a vote is expected next week, leaving many advocates hopeful that their concerns will be addressed before final decisions are made.