[r78] Rep. Crouch: Compromise Budget Does Its Job (6/23/2009)

STATEHOUSE - The Indiana Senate passed its budget bill by a vote of 33-17. This bill is now going back onto the House Floor to approve or disapprove of the Senate amendments.   

"The Senate-passed budget contains no tax increases, maintains a healthy reserve balance, cuts spending in every category except public safety and public education and properly uses one-time federal stimulus money," said Rep. Suzanne Crouch (R-Evansville). "This budget is a good plan for the state and deserves bipartisan support.

"I am ready to move the bill. I am proud to have voted in support of this bill. A majority of states have had to resort to raising taxes, cutting education or both. This budget responsibly deals with our current fiscal constraints and avoids future tax increases, preventing Indiana from becoming one of those suffering states.

"Speaker Bauer's needs to endorse this bill and protect Hoosier taxpayers. We cannot afford to spend ourselves into debt."

The Senate passed a $27.8 billion two-year budget and sent it to the House today. The House is scheduled to consider the budget when it convenes at 4 p.m.

Gov. Mitch Daniels listed five basic parameters for a state budget he would approve:

• No tax increases. The two-year Republican budget would fund state programs without any tax increases.
• Maintaining at least $1 billion in state reserves. The budget would leave reserves of $1.020 billion at the end of fiscal year 2011 - about $10 million more than Gov. Daniels' recommended budget.
• Spend a dollar, cut a dollar. The two-year Republican budget would add about $159 million in spending for a variety of items above the governor's recommended budget. These would be funded through $170 million in cuts elsewhere in the budget.
• Using one-time federal stimulus money for one-time purposes. In the Republican budget, stimulus money is slated for statewide infrastructure projects, university repair/rehabilitation projects and the final installment of state-funded homestead grants. These obligations, just like the stimulus money, will not appear in future budgets. Title I and special education stimulus money would be used for one-time investments to improve facilities, technology and equipment; this would not increase base operating expenses.
• No gimmicks. Construction debt service would be fully funded, the long-term viability of the Pension Stabilization Fund would be protected and the Medicaid forecast would be fully funded.

The Republican budget also is a pro-education budget:

• It includes the Educational Scholarship Tax Credit. It emphasizes that instruction-related dollars should follow the child.
• It includes the Educational Scholarship Tax Credit.
• It allows charter school growth by removing any caps. This is critical to making Indiana potentially eligible for federal Race to the Top grant dollars.
• It allows the state Department of Education to create a program for federal matching grants for charter schools.
• It gives charter schools access to Department of Education technology funds.
• It includes millions of dollars for Ivy Tech Community College.

"Indiana is being threatened by a financially crisis," Rep. Crouch said. "This budget bill is the solution to that financial crisis. It would protect our state's vital reserves, protect taxpayers and keep spending low."

"This budget reflects what's happening to Hoosier families," said Rep. Jeff Espich (R-Uniondale), ranking Republican member of the House Ways and Means Committee. "Hoosier families are adjusting their spending habits because of the economy, and this budget makes the same adjustments. Frankly, I don't think we can afford not to approve this budget. It lives within the pocketbooks of the people we serve."

If the House concurs with the compromise budget, the session ends and the budget goes to the governor. If the House does not concur, a conference committee will be appointed to reconcile differences. The current fiscal year ends June 30.