Republicans finalize $24 billion state budget

INDIANAPOLIS -- Republicans finalized a deal Wednesday on a two-year, $24 billion state budget they said would eliminate Indiana's budget deficit over two years and provide some new money for schools and Medicaid without raising state taxes.\nBut Democrats blasted the proposal, saying it relies too heavily on property tax increases and calling it the worst budget for education in Indiana's history.\nLawmakers also were closing in on a compromise plan to finance a new stadium for the NFL's Colts and an expansion of the convention center in downtown Indianapolis. The proposal likely would include an economic development package for northwest Indiana to expand the Gary airport and area rail service, among other things.\nWednesday, top Republicans said the proposed budget would provide basic state and local school funding increases of 1.2 percent the first year and 1.3 percent the second year. That assumes a statewide average increase in local property tax increases of 4.1 percent each year.\nSchools could also raise a number of additional property taxes to fund things such as transportation and textbooks for needy students. If schools chose to raise those taxes to the maximum level, schools statewide could get another $237 million over the two-year budget period. That would mean overall average funding increases of 2.6 percent the first year and 2.4 percent the second year.\nSen. Vi Simpson, D-Bloomington, said 142 of the state's 294 school districts would lose money under the budget if they chose not to raise the optional local property taxes, which are listed as outside provisions.\n"There's quite a shell game going on with this new designation of outside provisions," Simpson said. "It is a broken promise to taxpayers and a broken promise to the children of this state."\nRep. Jeff Espich, R-Uniondale, said four out of five school districts -- with 95 percent of Indiana's students -- would see funding increases if they took full advantage of the optional tax increases.\n"A lot is dependent upon the choices made by local schools," said Espich, chairman of the budget-writing House Ways and Means Committee.\nRep. William Crawford of Indianapolis, the top Democrat on Ways and Means, called the proposal the worst budget in state history for education.\n"It's going to mean increased class sizes and teacher layoffs," Crawford said.\nHouse Speaker Brian Bosma said Wednesday that he spoke with Republican Gov. Mitch Daniels and said the governor was pleased with the budget plan.\n"The governor loves the budget and he should," Bosma said. "We (Republicans) have done what we set out to do. No new taxes, no gimmicks, a balanced budget at the end of the two-year period, eliminate the deficit, additional funding for education and protect critical health care programs while restraining every other category spending.\n"It is the budget that will set the course for Indiana's fiscal future."\nDaniels did not make any immediate public comments on Wednesday.\nRepublicans control the House 52-48 and the Senate 33-17, and could pass the budget bill without any Democratic votes. Top Democrats have suggested their party will provide little, if any, support for it.\nIt takes 51 votes to pass a bill in the House and 26 in the Senate.\nRepublicans have said they want to wait 24 hours before voting on any final plan, which could allow a vote as early as Thursday. The deadline for the session to end is midnight Friday.