Because of the death of my mother, I missed some days of this General Assembly. It certainly reinforces the fact that elected officials are people with families and real lives. Parents, children, extended families and friends are important relationships that must be respected. So, I ask for understanding about my absence from the proceedings of the session.
My mother had battled several physical issues over the past few months, and the consequences simply could not be overcome. She passed away April 9 and was buried April 14.
Our family celebrated her life with many people of all walks of her life and had a very positive experience. She was truly loved and respected by so many. I thank everyone for their recognition and sympathy. My family appreciates their wishes very much.
We have reached the conference committee portion of this session, and this is when anything can happen to legislation. During these last few days, any language that has passed one chamber is eligible to be included in a conference committee report. So, any bill that has had some success could still become law.
Two bills demand our full attention - the budget and unemployment insurance. We must pass a balanced budget that the state can operate for the next two years, and unemployment insurance is in such a complicated situation that adjustments are necessary for employers and employees.
The budget continues to look bleaker. The state's revenue is declining, and the projections make for difficult decisions.
Actual collections tell the tale: $142 million in January, $42 million in February and $87 million in March. It should be obvious to everyone this cannot continue if we are to meet our obligations.
The House version and the Senate version of the budget are miles apart at this time. At stake are all the measures of education funding as well as funding for Medicaid and the Department of Correction. Because these funds represent the big three of the budget, declining revenues make their appropriations very questionable.
Are flat-lining state departments' and agencies' requests or even making cuts options that must be considered? Those thoughts are on the table.
Some people say, "Just spend down the state's balances and fill the holes with stimulus money from the federal government." That may sound good to some, but the practice will create a very tough problem in two years.
Why? The spending of windfall money will increase the budget base in two years and almost certainly require tax increases to fund the base during the future budget session. The stimulus money shouldn't be used to fund operating expenses. It needs to be used for one-time capital expenditures that create construction and jobs and will not add to the day-to-day operating expenses in the future.
It is very important for us to remember that spending one-time money on operating expenses will only cause a tax increase in the future.
The unemployment insurance account has borrowed well over $500 million from the federal government. Without a reasonable solution from this legislature, the feds can take over the regulation and make all the rules. Indiana needs to be the master of its own destiny. Federal regulations won't be friendly to any of us, employers or employees. This General Assembly needs to address this problem and allow the state to maintain control.
This will be one of the toughest finishes I can remember. We must do the best for all the citizens of Indiana. I trust we can.
More later,
Bill Friend |
