Indiana state treasurer calls foul on late-stage budget proposal stripping his power

Indiana State Treasurer Daniel Elliott is publicly opposing a provision in the Indiana Senate’s proposed budget that would strip some of his authority over managing TrustINdiana, a $3.4 billion investment fund comprised of local government money. Elliott criticized the move as a “backroom deal” driven by banking lobbyists and lawmakers, arguing that creating a new oversight board—stacked with bank executives—puts taxpayer money at risk of being guided by shareholder interests rather than public good. The proposed five-member board would include Elliott, the director of the Indiana Department of Financial Institutions, and three gubernatorially appointed banking representatives. Elliott contends this setup diminishes the voice of an elected official and prioritizes private financial interests over public accountability.

Supporters of the proposed change, including the Indiana Bankers’ Association, argue the fund needs broader oversight due to concerns about risky investments, such as large portions allocated to commercial paper and out-of-state or overseas assets. They claim the new board structure would provide transparency and help protect public funds amid global economic uncertainty. Association president Amber Van Til emphasized the requirement for a supermajority vote on the board and the presence of regulatory safeguards. Legislative leaders, while defending the intent behind the board, signaled they are open to negotiating the details. Elliott, however, remains firm in his opposition, criticizing the influence of banking money in politics and pledging to continue fighting the measure as budget negotiations progress.