A former Pentagon executive told Gary Chamber of Commerce members Monday that she’s using her federal experience to help improve Indiana’s economic status.
“It’s been really exciting,” said Lisa Hershman, Indiana’s secretary of management and budget. “… (Gov. Braun) said, ‘I want you, and I especially want you to do what you did at the Pentagon and bring it to the statehouse.’”
Hershman was the Gary chamber’s monthly luncheon speaker at its Monday meeting. From 2018 to 2021, she served as the chief management officer for the U.S. Department of Defense, the third-highest-ranking position at the Pentagon.
Gary Chamber of Commerce President and CEO Chuck Hughes highlighted Hershman’s experience Monday, saying that in the Pentagon, she managed a $168 billion budget and received “record-setting” savings of $37 billion through operational reform.
“We are so proud and delighted to have someone here who manages our money in the state of Indiana,” Hughes said.
Hershman didn’t see herself working in government, she said, and she got her career start in aerospace engineering. Her husband, Brandt Hershman, was a Republican state senator from 2000 to 2018, and she was “perfectly fine and content” being behind the scenes, she said.
However, during President Donald Trump’s first administration, they created her previous position in charge of reform, which she said had been her focus at a previous company.
“It was so interesting because the way Congress wrote the job description was that you had to have a minimum of seven years of large-scale reform experience, and you couldn’t come from government,” Hershman said. “It was a great signal of what you all bring from a business standpoint and what business can do to effectuate, influence and improve governments. It was really thrilling.”
During her role at the Pentagon, Hershman said she met Gov. Mike Braun — then a senator — and he took notice of how they were bringing private sector principles to government. After he won the election, he asked Hershman to come work for the state.
Hershman said Braun has made “some pretty significant changes” during his tenure as governor, including creating more coordination among state agencies.
During her Monday talk, Hershman also highlighted recent news from her office, including that revenue for fiscal year 2026 — which concluded at the end of June — was up 6.3%, compared to fiscal year 2024, where revenue grew 1.5%.
“That’s a huge jump,” she said.
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She also said Indiana’s government grew by 19.4% in 2024, and this year it grew by 0.75%. The state is still recovering its finances following the COVID-19 pandemic, Hershman said.
“One of the worst things that happened to us as a country, I believe, not only from the health standpoint but financially, was COVID,” she added. “That money started coming in, and all of a sudden, people started to get used to it.”
Hershman also said the Office of Management and Budget is committed to affordability with Braun, highlighting his recent move to extend Indiana’s gas tax holiday for another 30 days.
State officials are also looking at hospital pricing, Hershman said. Indiana physicians are some of the lowest paid nationwide, she said, but hospital bills are some of the highest.
“We’ve got a very robust study going on to make sure that we understand the role that hospitals play, the role that the feds play, the role that the insurance companies play,” Hershman said, “and how to make that work for Indiana.”
Hershman is also looking at “how to leverage” artificial intelligence, saying she doesn’t see it as a replacement but an “enhanced tool.” She believes AI can be leveraged to do transactional work and centralize some functions.
Hershman also gave an update on the Bears’ potential move to Hammond, saying the team’s officials have “been a treat” to work with. She also said the Bears officials have said “it’s amazing” to work with Indiana officials.
“The board is made up of all family members except for one member, but each one of them had a connection to Indiana,” Hershman said. “I thought that was interesting. … I can tell you that things are moving along nicely, so we’re very excited.”