A proposed one-year state budget from Indiana House Democrats includes a 2 percent increase in higher education.
Rep. Dennis Tyler, whose district includes Ball State University, said the bill is better than the governor's proposal for Ball State. He said the governor's bill has a decrease in higher educations funding, which would force Ball State to either layoff employees or raise tuition,
Tyler said the governor's budget would also hurt Muncie schools. He said while the governor's budget technically increased funding, the use of stimulus funds would limit what they can be used for.
Democrats denied claims by Republicans that the one-year plan spends too much and would lead to a tax increase or drastic cuts in services.
"That's just not true. It doesn't spend one penny more than the governor's," Tyler said.
The House Ways and Means Committee, on which Tyler serves, held its first public hearing on the bill Friday, with plans to consider amendments on Monday and possibly vote to move the bill to the full House. Democrats control the chamber 52-48, so it is possible they could pass the bill and send it to the Republican-ruled Senate next week without any GOP votes.
The two chambers did not pass a new budget by the regular session deadline of April 29, forcing the special session. The current two-year budget expires on June 30.
According to the Legislative Services Agency, the plan from House Democrats would spend about $13.6 billion from the state's main checking account and reserves in the fiscal year that begins July 1, plus about $4 billion more from dedicated accounts and federal money - some of it stimulus funds.
Some of the additional $4 billion would be spent on one-time expenditures, but some of it would go toward operating costs, such as the increase in higher education.
Under Gov. Mitch Daniels' proposal, overall state general fund spending would be 2.5 percent below the current budget. Many state agencies would see cuts and higher education operating costs would drop 4 percent.
Daniels' budget would spend $27.5 billion from the state's general fund through the 2010 and 2011 fiscal years, but when stimulus money is factored in, it would spend $28.5 billion, according to the governor's office.
The administration said that if the funding in the Democratic plan were carried out into a second year at the same level, it would use up about $800 million of the state's general fund and reserves. They said that's because Democrats spend all the available federal stimulus dollars now in one year, instead of spreading it out over two years.
The State Budget Agency said the House Democrat plan would leave only $175 million in reserves at the end of two years if the proposal were carried into a second year. That would only be enough to run state government for four days, according to the agency.
State Budget Director Chris Ruhl said if the Democrat plan was enacted, "it's a sure ticket to the bankruptcies and tax increases occurring in so many other states."
But House Democrats say their plan would leave about a $1 billion surplus at the end of one year, and they can come back in the next regular session in January and write a budget covering the second year based on more accurate predictions of how much money the state will take in without tax increases.
"My caucus isn't interested in tax increases. We're not going to support any tax increases," Tyler said.
Read More
Three Air Jam teams take home the win
October 12, 2012Nineteen teams shimmied, shook and flipped for a sold out John R. Emens Auditorium on Thursday night during the 25th annual Air Jam.
Bill Clinton Speaks at North Central High School
October 12, 2012Former President's Speech Could Have Effect on State Senate Race
