Indiana Senate's budget proposal would boost K-12 funding

By Eric Bradner, Evansville Courier & Press

INDIANAPOLIS - The state Senate Appropriations Committee this morning advanced a budget proposal that uses federal stimulus money to boost K-12 education spending by 2 percent over the next two years.

The plan, unveiled last night by the committee's chairman, Sen. Luke Kenley, R-Noblesville, passed the plan on to the full Senate today on a 10-2 vote.

Covering two years and carrying a $28.1 billion total price tag, Kenley's proposed budget fails to heed Gov. Mitch Daniels' warnings that lawmakers should not use stimulus money to build a cliff the state is destined to fall from two years later when stimulus money runs out.

It uses $823 million in stimulus dollars marked for education to avoid having to flat-line spending there - something school officials said would have caused teacher layoffs.

It also boosts spending on higher education by 0.6 percent in 2010 and 1.4 percent in 2011.

The spending plan does preserve the state's $1.3 billion surplus. Kenley said his budget leaves a structural deficit of about $336 million, and if the economy hasn't improved enough for state tax revenues to overcome that deficit, the state's reserve fund would provide a fallback.

Democrats on the Appropriations Committee said they have some differences - including wanting to spend more on capital projects at Indiana's colleges and universities and less on the expansions of two prisons - but called Kenley's proposal a good start.

Sens. John Broden, D-South Bend, and Earline Rogers, D-Gary, were the two "no" votes.

School officials testifying Thursday said they favored much of the bill, but objected to a provision that prohibits schools from using their capital projects funds to help cover the costs of utilities and transportation.