Despite a price tag three times higher than the original estimate, Indiana seems to still be planning to pay cash, instead of borrowing, to cover the costs of replacing the aged Westville Correctional Facility in LaPorte County.
The State Budget Committee learned in December that the projected cost of demolishing most of the Westville prison — originally constructed in 1951 as a state mental health center — and rebuilding it on the same site to modern security standards has soared to $1.2 billion due to higher materials and labor expenses, up from a projected $400 million two years ago.
In response, Republican Gov. Eric Holcomb last month included an $800 million appropriation for the prison project in his 2024-25 state budget proposal to supplement the $400 million state lawmakers approved for the Westville project in 2021.
It's not yet known whether House Republicans will keep the extra money for Westville prison in the House Bill 1001 state spending plan when they unveil their revisions to the governor's budget, likely next week.
But last week the Republican-controlled House turned down an opportunity to mandate any spending on Westville totaling more than $450 million use borrowed funds, instead of cash, in keeping with a multi-year GOP priority of reducing the state's debt obligations.
State Rep. Greg Porter, D-Indianapolis, the top Democrat on the budget-writing House Ways and Means Committee, proposed the bonding requirement for Westville to make more cash available for a plan to expand the state's earned income tax credit in House Bill 1290, as well as to meet other immediate state needs.
"That much money could accomplish a lot, from eliminating the textbook tax and raising teacher pay to investing in public health or cutting taxes for the working class," Porter said. "It's a shame the supermajority would rather pay for a prison in cash than invest in the people."
The House technically did not reject Porter's proposal to borrow for Westville. House Speaker Todd Huston, R-Fishers, declined to permit a vote on it because he said it was insufficiently germane to the underlying tax credit legislation.
Porter's appeal of Huston's ruling to the full House was sustained, as usual, on a party-line vote, with 67 Republicans backing the speaker's interpretation of the House rules and 27 Democrats opposed.
"Bonds are apparently the bogeyman of the General Assembly — the supermajority is terrified of them, it seems," Porter said.
"I'd like to set the record straight by pointing out that bonds are a healthy tool to use to accomplish our fiscal objectives. Our AAA credit rating is pointless if we don't make use of it by responsibly financing capital projects with bonds," he added.
The House vote does not end the debate over whether the rebuilding of the Westville prison will be cash-funded, bond-funded, some combination of the two or canceled altogether.
Ultimately, the House and Senate must reach an identical decision by April 29 that's acceptable to a majority of members in both chambers for it to go to the governor to be signed into law.
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