Post by Star on Feb 20, 2009 13:43:19 GMT -5
The Indiana House voted today on straight-party lines for a one-year state budget that calls for spending more than $14.5 billion in 2010, giving the OK for big increases in university building projects and no money to build new prison space.
All 52 House Democrats voted yes, while all 44 of the Republicans in the chamber voted no.
Four Republicans were not able to attend the rare Friday session. It originally appeared that one Republican, Rep. Cindy Noe of Indianapolis, voted for the Democrat budget, but she said she had pushed the wrong button when she cast her vote.
House Bill 1001 now moves to the Senate, where it is expected to undergo a major rewrite. That will set the stage for the Democrat-controlled House and Republican-controlled Senate to hash out a compromise by the April 29 deadline. Failure to reach agreement would mean a special session.
The bill was passed after about two hours of sometimes heated debate in the House. About the only thing Republicans and Democrats agreed upon was that the budget is the most important bill in the legislature, laying out the state's spending priorities.
House Ways and Means Chairman Bill Crawford, D-Indianapolis, argued that the bill is "structurally balanced," even though it relies on $100 million from the state's Rainy Day Fund and $100 million from the Tuition Reserve Fund.
It also counts on $540 million of federal stimulus money for Medicaid, the health care program for the indigent.
Gov. Mitch Daniels has said the state should not tap any reserves, and proposed a two-year, $28.3 billion budget that kept K-12 public school spending virutally flat; cut higher-education funding by about 4 percent overall and gave its only new building projects to prisons.
Areas of disagreement
Republicans liked nothing about the bill that came out of the House today. While Crawford said the bill leaves more than $1.1 billion in the combined state reserves, Republicans argued that estimate doesn't count spending in other bills and really leaves less than $500 million in reserves at the end of fiscal 2010 and would leave less than $200 million in reserves if the same spending plan was used in fiscal 2011.
Rep. Jeff Espich, the Uniondale Republican who is the House GOP point man on fiscal issues, said the budget is terribly flawed.
"The best thing that I can do is euthanize it," he said.
House Minority Leader Brian Bosma, R-Indianapolis, argued that one provision, which would allow schools flexibility to tap capital-projects funds for other expenses such as utility bills, would lead to property tax increases.
Democrats denied that, saying the provision merely allows schools to divert money they already have, and that increases can't happen under the property tax caps currently in state law.
Republicans also chastised Democrats for proposing a one-year budget, something that hasn't happened in Indiana since the mid-1970s. Democrats noted that 29 states, as well as the federal government and most businesses and not-for-profit organizations use one-year budgets
The uncertainty of the current recession, Democrats said, means a one-year budget makes the most sense. Republicans, though, said the 29 states that have one-year budgets are among those suffering the most in this economic crisis, because they don't plan ahead well enough.
Rep. Scott Pelath, D-Michigan City, said that while there's not a lot of precedent in Indiana for a one-year budget, "we don't have any precedent for the times we live in right now."
Republicans also criticized the fact that the budget -- while calling for $5 million more than Daniels had asked for for community corrections programs -- gives no money for new prison construction.
The Department of Correction has said the space is urgently needed as the number of violent offenders has risen. The department already is double and triple-bunking inmates.
Bosma and Rep. Eric Turner, R-Marion, warned that the failure to build new prison space could mean the early release of inmates.
"These are tough economic times. But I can promise you people want to be safe," Turner said.
Pelath, though, said the budget makes a policy statement that education, not prisons, is a priority.
"It absolutely sends the right message," he said.
Hoping to create jobs
Crawford said Democrats are saying 'no' to Daniels -- and did the same in 2003 when a Democratic governor, Frank O'Bannon, also proposed a budget that flat-lined education spending but asked for more money for prisons.
Democrats argued that the massive spending on university projects will create needed jobs. Their budget would give the OK for $185 million in projects that were previously approved the legislature but not yet given the go-ahead by the State Budget Committee. And it would clear the way for another $600 million in projects.
The debt service on those projects is delayed until 2011, to lessen the impact on the budget's bottom line.
Rep. Terry Goodin, D-Crothersville, said that spending is crucial.
"This budget bill is a jobs bill," he said. "This budget bill puts people to work."
Republicans, though, said jobs could also be creating building the two prison expansions at Miami and Wabash Valley correctional centers, while also keeping the public safe.
"Why is it job-creation to build a building on a university campus and not job-creation to keep people in Indiana safe and secure?" said Rep. Ralph Foley, R-Martinsville.
All 52 House Democrats voted yes, while all 44 of the Republicans in the chamber voted no.
Four Republicans were not able to attend the rare Friday session. It originally appeared that one Republican, Rep. Cindy Noe of Indianapolis, voted for the Democrat budget, but she said she had pushed the wrong button when she cast her vote.
House Bill 1001 now moves to the Senate, where it is expected to undergo a major rewrite. That will set the stage for the Democrat-controlled House and Republican-controlled Senate to hash out a compromise by the April 29 deadline. Failure to reach agreement would mean a special session.
The bill was passed after about two hours of sometimes heated debate in the House. About the only thing Republicans and Democrats agreed upon was that the budget is the most important bill in the legislature, laying out the state's spending priorities.
House Ways and Means Chairman Bill Crawford, D-Indianapolis, argued that the bill is "structurally balanced," even though it relies on $100 million from the state's Rainy Day Fund and $100 million from the Tuition Reserve Fund.
It also counts on $540 million of federal stimulus money for Medicaid, the health care program for the indigent.
Gov. Mitch Daniels has said the state should not tap any reserves, and proposed a two-year, $28.3 billion budget that kept K-12 public school spending virutally flat; cut higher-education funding by about 4 percent overall and gave its only new building projects to prisons.
Areas of disagreement
Republicans liked nothing about the bill that came out of the House today. While Crawford said the bill leaves more than $1.1 billion in the combined state reserves, Republicans argued that estimate doesn't count spending in other bills and really leaves less than $500 million in reserves at the end of fiscal 2010 and would leave less than $200 million in reserves if the same spending plan was used in fiscal 2011.
Rep. Jeff Espich, the Uniondale Republican who is the House GOP point man on fiscal issues, said the budget is terribly flawed.
"The best thing that I can do is euthanize it," he said.
House Minority Leader Brian Bosma, R-Indianapolis, argued that one provision, which would allow schools flexibility to tap capital-projects funds for other expenses such as utility bills, would lead to property tax increases.
Democrats denied that, saying the provision merely allows schools to divert money they already have, and that increases can't happen under the property tax caps currently in state law.
Republicans also chastised Democrats for proposing a one-year budget, something that hasn't happened in Indiana since the mid-1970s. Democrats noted that 29 states, as well as the federal government and most businesses and not-for-profit organizations use one-year budgets
The uncertainty of the current recession, Democrats said, means a one-year budget makes the most sense. Republicans, though, said the 29 states that have one-year budgets are among those suffering the most in this economic crisis, because they don't plan ahead well enough.
Rep. Scott Pelath, D-Michigan City, said that while there's not a lot of precedent in Indiana for a one-year budget, "we don't have any precedent for the times we live in right now."
Republicans also criticized the fact that the budget -- while calling for $5 million more than Daniels had asked for for community corrections programs -- gives no money for new prison construction.
The Department of Correction has said the space is urgently needed as the number of violent offenders has risen. The department already is double and triple-bunking inmates.
Bosma and Rep. Eric Turner, R-Marion, warned that the failure to build new prison space could mean the early release of inmates.
"These are tough economic times. But I can promise you people want to be safe," Turner said.
Pelath, though, said the budget makes a policy statement that education, not prisons, is a priority.
"It absolutely sends the right message," he said.
Hoping to create jobs
Crawford said Democrats are saying 'no' to Daniels -- and did the same in 2003 when a Democratic governor, Frank O'Bannon, also proposed a budget that flat-lined education spending but asked for more money for prisons.
Democrats argued that the massive spending on university projects will create needed jobs. Their budget would give the OK for $185 million in projects that were previously approved the legislature but not yet given the go-ahead by the State Budget Committee. And it would clear the way for another $600 million in projects.
The debt service on those projects is delayed until 2011, to lessen the impact on the budget's bottom line.
Rep. Terry Goodin, D-Crothersville, said that spending is crucial.
"This budget bill is a jobs bill," he said. "This budget bill puts people to work."
Republicans, though, said jobs could also be creating building the two prison expansions at Miami and Wabash Valley correctional centers, while also keeping the public safe.
"Why is it job-creation to build a building on a university campus and not job-creation to keep people in Indiana safe and secure?" said Rep. Ralph Foley, R-Martinsville.