INDIANAPOLIS | The Indiana Senate on Thursday agreed to a $28.2 billion, two-year state budget that keeps most state spending at reduced 2011 levels, does not increase taxes and is projected to leave Indiana with more than $1 billion in the bank by June 2013.
House Bill 1001 was approved 36-14 on a nearly party-line vote, with all Democrats and state Sen. Vaneta Becker, R-Evansville, voting no.
The legislation now goes to a House-Senate conference committee to settle differences in the separately approved versions of the budget. Both chambers will vote on a compromise budget next week.
State Sen. Luke Kenley, R-Noblesville, chairman of the Senate Appropriations Committee, said the proposed budget is balanced, fiscally responsible and something all Hoosiers can be proud of as they watch other states continue to slash spending or raise taxes.
Kenley also touted a $150 million increase in state spending on education, with some $40 million going to expand full-day kindergarten statewide.
Democrats pointed out that increase comes on the heels of Republican Gov. Mitch Daniels' $300 million annual cut to education since 2009, leaving schools $750 million short through 2012.
State Sen. Earline Rogers, D-Gary, said the school funding formula contained in the budget takes money away from many region schools, including 27 percent of state funding for Gary Community School Corp.
"The school funding formula is a big hit because of declining enrollment and the absence of a deghoster, which negates the loss of students," Rogers said.
The new formula generally directs more money to growing school corporations and charter schools at the expense of traditional public schools.
The Senate budget also increases funding for some Medicaid services to cover increasing health care expenses, freezes lawmaker pay for the next two years and includes a $1,000 daily penalty to punish lawmakers who participate in a partisan walkout.