INDIANAPOLIS — Democrats who control the Indiana House moved forward Tuesday on their version of a one-year budget plan that includes some key differences from a proposal recommended by Republican Gov. Mitch Daniels.
The plan was approved by the Ways and Means Committee on a 14-9 party-line vote and now moves to the full House, where passage is expected because Democrats control the chamber 52-48. Republicans who rule the Senate 33-17 will pass their own version of a budget, setting the stage for later compromise.
Combined budget plans by House Democrats would spend about $14.5 billion in the next fiscal year that begins July 1. That compares to about $14.15 billion Daniels proposed in first-year spending.
The House Democrat plan would increase spending for higher education operating expenses by 1 percent in the next fiscal year, and restore a 1 percent cut Daniels implemented this year. Daniels had proposed cutting basic spending for colleges and universities by an average of 4 percent over the next two years.
Among other differences:
— A separate House Democrat plan would increase basic funding for public schools by an average of 2 percent next year, while Daniels had recommended that their funding essentially remain flat.
— The House Democrat proposal would spend more than $100 million in new money for prison operating costs, as Daniels had requested. But it would not authorize $40 million in bonding authority the governor wants to expand the Miami Correctional Facility near Peru and the Wabash Valley Correctional Facility near Sullivan to house an increasing number of inmates.
— House Democrats also want to authorize bonding for hundreds of millions of dollars in building projects, including some Daniels had put on hold in hopes of keeping the budget balanced. The bill also would restore $35 million for a joint life-sciences project between Indiana and Purdue universities.
Democratic Rep. Scott Pelath of Michigan City, vice chairman of Ways and Means, said funding for education was a priority for House Democrats.
In a break from tradition, House Democrats are proposing spending plans that would cover just one year instead of two. They also separated their budget into three bills, one covering education, one for child welfare services and the one endorsed Tuesday for spending on almost everything else.
Pelath said the continuing sagging economy was the reason behind a one-year budget proposal.
“We think it makes sense for the times we are in,” Pelath said. “We have a very conservative measure — one that keeps reserves and one that gives us the flexibility to come back next year and make adjustments as needed because we just don’t know what our economic future is going to hold.”
But Rep. Jeff Espich, R-Uniondale, said a one-year budget could set a precedent resulting in lawmakers becoming a full-time Legislature that would be inclined to spend more money each year. He said that could lead to tax increases.
Senate Appropriations Chairman Luke Kenley, R-Noblesville, indicated that the House Democrat version of a budget is likely to undergo many changes in the Senate — in part because he said it spent too much. Daniels and the two chambers ultimately will seek compromises before the session is scheduled to end on April 29.
Kenley said he wanted to stick with a two-year budget because he said it gives residents and businesses more certainty on what to expect over a longer time. He said lawmakers could always make adjustments to a two-year budget next session if necessary.
Kenley said he considered the House Democrat spending plans statements of priorities, and he could understand why they might want to stick to a one-year budget proposal for now.
That was in part, he said, because analysts are still trying to determine exactly how Indiana can spend more than $4 billion in federal dollars the state expects to receive from a federal stimulus package signed into law by President Barack Obama on Tuesday.
State News
Dems OK spending $200 million from Indiana reserves
- State News
-
-
Hundreds pay respects to slain Indiana soldier
Hundreds of people turned out for the funeral of a northeastern Indiana soldier who was killed by enemy rocket fire in Afghanistan.
-
Allisonville Road bridge project in Indianapolis begins Wednesday
The already rough commute on the Northeastside of Indianapolis will only get longer this summer.
To complete a $19 million road improvement as quickly as possible, state highway officials Wednesday will close the Allisonville Road bridge over I-465 for up to 110 days.
-
Delaware County grandstand likely done by July
Delaware County says the show will go on this summer with new fair grandstand after it demolished the old one because of safety concerns found during an inspection prompted by the deadly Indiana State Fair stage collapse.
-
Fort Wayne officials give tax breaks another look
Officials in a northeastern Indiana city are taking another look at their policy on property tax abatement, which critics consider too generous but supporters contend is needed to attract businesses.
-
Police probe similarities in missing IU student
Police in Bloomington say they have contacted authorities in Louisiana about their search for a college student whose disappearance has similarities to that of an Indiana University student who has been missing for nearly a year.
-
Census: Hispanics boosting Indiana's small towns
Hispanics are fueling population growths in many small Indiana towns that are seeing their white populations shrink, census figures show.
-
Indy 500 in the books, but heat isn't a record
Fans sought shade under the grandstands and beneath umbrellas. Misting stations got a healthy workout. But Sunday's Indianapolis 500 won't go down in the record books as the hottest in the 101-year history of the race.
-
Rose-Hulman renames center for late president
Rose-Hulman Institute of Technology is renaming its Student Innovation Center after late President Matt Branam.
-
Ohio casinos will cut into nearby states' winnings
The opening of casinos in Ohio this spring means the luck is running out for neighboring states that have pulled in an estimated $1 billion each year from gamblers who've been crossing the border to wager at riverboats in Indiana, gaming tables in Michigan and casinos in western Pennsylvania.
-
Dry spring causing concern for holiday weekend
An abnormally dry spring has farmers worried about crops and the Indiana fire marshal concerned about fireworks, cookout and bonfires sparking fires during the Memorial Day weekend.
- More State News Headlines
-
Hundreds pay respects to slain Indiana soldier


