INDIANAPOLIS
(AP) -- Democrats who control the Indiana House advanced their version of a
new state budget to the full chamber on Monday with little sign that it will
gain much if any support from outnumbered Republicans.
The House Ways
and Means Committee endorsed the plan on a 15-10 party-line vote after
approving several amendments to the one-year spending bill. The changes
included provisions that would increase spending for certain items and
programs, and tax incentives to help the beleaguered recreational vehicle
industry in northern Indiana.
The committee
also added a provision by Rep. Robert Cherry, R-Greenfield, that would make
the administration of Republican Gov. Mitch Daniels reopen a state school
for troubled and needy youth for at least another year.
The
administration closed the Soldiers’ and Sailors’ Children’s Home east of
Indianapolis late last month, in part because of costs. The administration
plans to convert the school to a National Guard military academy for high
school dropouts next year.
The amendment
approved Monday would allow the academy to share the 53-building campus with
the children’s home. The House Democrat budget contains $10 million to fund
the home for another year.
But Cherry
joined the other nine GOP members on Ways and Means in voting against the
overall bill. They say it spends about $500 million more in one year than
Daniels proposed in the first year of a traditional two-year plan he
presented earlier this month.
Rep. Jeff Espich
of Uniondale, the fiscal leader for House Republicans, said if funding in
the House Democrat budget were carried into a second year at the same
funding levels, it would reduce the state’s $1.3 billion surplus to between
$100 million to $200 million. That would only be enough to fund state
government for a few days.
“I liken this
budget to a credit-card budget -- spend now and pay later, and paying later
will be a tax increase,” Espich said.
House Democrats
say their plan would increase state spending on schools by a statewide
average of 2 percent or more, and increase operating costs for public
colleges and universities as well as student financial aid. They say it
would leave a surplus of more than $1 billion by the time it would expire in
June 2010.
Democrats
dismiss the idea of future tax increases and defend a plan only covering one
year, saying there is too much uncertainty about the volatile economy and
how much the state might collect in revenue over a two-year period.
“If we have to
cut next year, then we will responsibly cut,” said Ways and Means Chairman
William Crawford, D-Indianapolis.
Crawford noted
that it will take bipartisan support to pass any new budget, since Democrats
have a 52-48 majority in the House while Republicans rule the Senate 33-17.
A budget plan
did not pass both chambers on the final day of the regular session on April
29, forcing a special session that began on June 11. The current two-year
budget expires on June 30, pressuring lawmakers to pass a new plan by then
that either meets Daniels’ approval or can be enacted over a veto.
It takes a
simple majority in both chambers to override a governor’s veto in Indiana. A
Democrat-ruled House and Republican-controlled Senate passed a budget during
a contentious special session in 1993 by overriding a veto by then
Democratic Gov. Evan Bayh. It happened on June 30, the last day of the
fiscal year.
The full Senate
met on the first day of this special session, but quickly adjourned until
further notice. Members plan to return once the House sends them a budget
bill, which could be later this week or early next week.