Senate Minority Leader Responds to Passage of Senate Bill 1

Shelli Yoder opposes the property tax bill that was passed by the Senate earlier this week.

Shutterstock photo.

INDIANAPOLIS - In the early hours of Tuesday morning, the Indiana Senate passed legislation that will fundamentally reshape how communities fund their schools, operate local government and care for working families — all in the span of a few short hours and with little public input.

Senate Minority Leader Shelli Yoder (D-Bloomington) voted no on both Senate Bill (SB) 1 and House Bill (HB) 1001 , citing a shell game of tax relief for working families, and  long-term damage to public schools, local services and community trust.

RELATED: Gov. Braun to Sign Senate Bill 1 Into Law

“These bills may be written in legal language, but their impact is personal,” Yoder said. “They affect classrooms, fire stations, family budgets — the places where policy meets real life.”

SB 1: A midnight vote that exposed deep divisions

Just after midnight, the Senate narrowly approved Senate Bill 1 — a sweeping property tax package disguised as relief, but it simply shifts the burden. While it lowers some property tax bills on paper, it allows local governments to raise income taxes to make up the difference. That’s not relief — it’s rearranged responsibility, and Hoosiers deserve to understand what’s really happening.

For weeks, Yoder and others raised the same fundamental concerns: this bill doesn’t help renters, it hurts communities and it puts local safety and services at risk.

“We said it over and over — this isn’t the way,” Yoder said. “This bill caps revenue, slashes funding for schools and public safety, and still leaves out nearly 40% of Hoosiers who rent their homes.”

The vote itself revealed a rare public split within the supermajority. SB 1 passed just 27–22, with several members of the majority caucus joining Democrats in opposition.

“Even some of their own said no — because they know this won’t hold up,” Yoder said. “This isn’t reform. It’s a rushed attempt to say something was done, without doing the hard work to do it right.”

Under SB 1, public school districts that pass referenda will now be required to share revenue with charter schools — even when those voters never approved that change. The bill also phases out the homestead deduction, limits levy tools for local governments and dissolves a rural school corporation — all while locking communities into stricter rules for future funding requests.

“This bill strips local control and calls it relief,” Yoder said. “We offered solutions. We proposed responsible paths forward. And we were ignored.”

HB 1001: A missed opportunity in plain sight

Later that morning, the Senate passed the state’s two-year budget and many critical categories were left unfunded.

“This budget could have invested in what families across Indiana are asking for: affordable child care, better access to health care, strong public schools and safe housing,” Yoder said. “But time and again, those options were voted down.”

Senate Democrats offered more than 60 amendments, including proposals to expand pre-K access, improve maternal and pediatric health outcomes, support renters and low-income parents, and responsibly raise revenue through cannabis regulation. Most were dismissed without debate.

“This wasn’t about spending more — it was about spending smarter and providing funding solutions,” Yoder said. “We had the tools to create long-term economic stability, boost workforce participation and strengthen Indiana families. But that opportunity was ignored.”

One day, two votes and years of impact

The third reading deadline also brought more than a dozen other bills to the Senate floor — some changing health care eligibility, others restructuring how elections, infrastructure and education are managed.

Yoder said the sheer volume and pace of legislation Tuesday made it nearly impossible for the public to track or engage.

“This isn’t how good government works,” she said. “People deserve a process that’s transparent, intentional and inclusive. What they got was a blur of rushed decisions with very real consequences.”

A message for every Hoosier

Yoder closed by saying that whether a Hoosier voted red, blue or not at all — these decisions affect everyone.

“This isn’t a partisan issue. It’s about what kind of Indiana we want to live in,” she said. “Do we want to build strong local schools, support working families and trust communities to lead? Or do we want to centralize control and call it progress?”

“We voted no because these bills make Indiana weaker, not stronger. I voted no because when communities lose funding, families feel it. And I voted no because Hoosiers deserve a government that listens and does not destabilize the foundation of their daily lives.