INDIANAPOLIS — Funding for education, school safety and the Indiana Department of Child Services will be increased under the Indiana House Republicans’ two-year budget proposal, a plan that matches Gov. Eric Holcomb’s agenda.
The proposal is to be presented Tuesday morning during the House Ways and Means Committee meeting.
“We continue to strengthen our commitment to Hoosier students and educators and to those in the state’s child welfare system,” said state Rep. Todd Huston, R-Fishers, who is co-chair of Ways and Means. “Our budget also funds key workforce initiatives while promoting Career and Technical Education to better prepare Indiana’s next generation of Hoosier workers.”
The proposal keeps budget reserves of at least 11 percent for each of the next two years and is based on a $34.6 billion annual budget for 2020 and 2021.
Funding for K-12 education is set to increase 4.3 percent, under the proposal, including 2.1 percent in 2020 and 2.2 percent in 2021. That translates into a $461 million increase to local school tuition over the biennium.
House Speaker Brian Bosma, R-Indianapolis, said the proposal is “structurally balanced” and protects the state’s AAA credit rating.
The proposed budget also includes $150 million from the reserves to pay off teacher pension needs that should yield a $70 million savings for local schools, Huston said.
School districts will be encouraged, but not mandated, to use the savings for increasing teacher pay. Along with the K-12 increase, the budget provides a total state investment of $611 million over the biennium, Huston said.
The budget proposal increases funding for the Secured School Safety Grant program, which includes money for mental health services for students. However, the current legislature has yet to pinpoint other programs that could apply for safety grants. The amount would increase from the current $14 million to an additional $5 million each year.
The proposed budget does not anticipate that a cigarette tax will be passed by the Legislature.
Republicans are in control of both chambers. The House plan also supports $30 million a year for Teacher Appreciation Grants, which are to be used to reward effective teachers.
Holcomb requested $286 million in new funding to the Department of Child Services. That is backed by House Republicans. DCS has been troubled by a high number of child welfare cases and caseworker turnover. Indiana has more children in the child welfare system than in surrounding states.
Also, to assist communities with aging water infrastructures, the budget includes a commitment of $20 million each year for improvements. The money is to be used to leverage up to $2.1 billion in capital funding.
Indiana’s general fund covers funding for K-12, higher education, Medicaid, health and human services, general government, corrections, public safety and capital project.