STATEHOUSE (July 1, 2009) — The new state budget, based on solid common-sense principles, is a success for Hoosier taxpayers and education.
“Despite numerous compromises, House Republican principles remained at the core of the state budget,” House Republican Leader Brian C. Bosma (R-Indianapolis) said.
Today is the first day for the two-year plan, passed Tuesday evening with bipartisan support. All 48 House Republicans were among the majority in the 62-37 House vote. The Senate vote was 34-16. The budget’s framework is based on five Republican parameters:
- It contains no general tax increases.
- It maintains at least $1 billion in state reserves.
- Spend a dollar, cut a dollar.
- It uses one-time federal stimulus money responsibly, including statewide infrastructure and university construction projects.
- It does not raid trust funds or other dedicated money for operating expenses.
- Gov. Mitch Daniels, along with House and Senate Republicans, outlined those standards early in the process and did not waver.
“Hoosier taxpayers and students are the winners in this budget,” Rep. Bosma said. “House and Senate Republicans, along with the governor, entered into the budget process with key principles, including maintaining appropriate state reserves and protecting public education and public safety funding.
“While most states are cutting education, raising taxes or both, this budget does neither. It maintains public education spending and promises even more support for education through additional funding when the economy improves.”
The “education trigger” would allot 50 percent of state revenue to education when income exceeds revenue projections. The other half of the money would be designated for the state’s general fund.
Education receives solid support:
- K-12 education receives with an average increase of 1.1 percent in calendar year 2010 and 0.3 percent in calendar year 2011.
- The budget fully funds enrollment increases at rapidly growing schools.
- Ivy Tech Community College receives enhanced support, improving the state’s community college network as well as training opportunities for unemployed workers.
- The state’s higher education scholarship grants program receives increases of 6 percent in fiscal year 2010 and 3 percent in fiscal year 2011.
- Bonding is authorized to fund 38 university capital projects throughout the state, including Indiana University Southeast, Purdue University and Indiana University-Purdue University Fort Wayne.
- Other Critical Programs Serving Hoosiers Funded
Thousands of Hoosiers will also benefit from other programs included in the budget:
- Community and Home Options to Institutional Care for Elderly and Disabled. The CHOICE program allows the elderly and disabled — among our most vulnerable Hoosiers — the opportunity to continue living at home while still receiving the care they need.
- Community Health Centers. These provide medical care to Hoosiers who might not otherwise have the resources for it.
- Department of Child Services ombudsman. The ombudsman position will increase accountability within DCS through an independent review of sensitive cases.
- All of this is done without a general tax increase now, without the threat of one within two years and without a shutdown of state agencies and services.
“This budget is the right budget to assure Indiana’s fiscal future,” Rep. Bosma said. “Republicans stood firm for the taxpayer, and we will continue to do so in the future.”
Rep. Jeff Espich (R-Uniondale), the ranking Republican member of the House Ways and Means Committee and the House Republican conferee on the budget conference committee, said that while the budget may not have included everything every member wanted, it is a budget that reflects the best interests of Indiana.
“This is an Indiana budget,” Rep. Espich said. “Not everyone got their wishes, but, through all the discussions and hard work, the state is well-served by this budget. It does not increase taxes, the state maintains healthy reserves, and education spending is protected. Other states would love to be in our position.”
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