[r76] Budget Overview (3/16/2011)

House Republicans have embraced the principle of a "spending freeze" budget. Hoosiers across that state are making do with less, and so too should their state government. In this proposed budget, most executive branch agencies are held to actual Fiscal Year (FY)11 spending levels for both FY12 and FY13. FY12 and FY13 appropriations for most agencies are 15% below their FY11 appropriations and 25% below their FY09 appropriations. There are some notable exceptions; including Medicaid and Pension obligations.

K -12 education is the top funding priority. K-12 funding accounts for nearly half of the state's budget and the budget preserves current statewide tuition support funding for K-12 schools for both Calendar Year (CY)12 and CY13. Statewide tuition support will be maintained at CY11 levels for CY12 and CY13. The proposed House budget funds most Department of Education grant programs related to student instruction, such as full day kindergarten and textbook reimbursement, at FY11 levels.

House of Representatives' Budget Parameters

• No tax increases
• Structural balance by FY13
• Maintain sufficient reserves to protect taxpayers
• Protect K-12 education
• The FY12/13 budget will protect Hoosier taxpayers, preserve vital services, and allow Indiana to maintain the stable and sound fiscal environment necessary to create Hoosier jobs

Creating A Budget That Attracts Jobs
House Bill 1001: Fiscal Years 2012-2013 Budget

-- Preserves K-12 tuition support funding at current levels
-- In Texas, for example, the legislature is considering cutting $4.8 billion from local schools over the next two years