Indiana Democrats tweak budget plan

By Patrick Guinane, Times of Northwest Indiana
patrick.guinane@nwi.com

INDIANAPOLIS | The Gary School Board would decide whether to let competing charter schools set up shop in the city under an amendment to a Democratic state budget plan that advanced Monday to the full Indiana House.

The House Ways and Means Committee approved the budget on a 15-10 party-line vote after considering nearly three-dozen amendments adding roughly $100 million to the already hefty one-year spending plan.

The additions include $4 million in federal stimulus money to start an "I-Span" public broadcasting program to cover the General Assembly the way C-Span follows Congress. Democrats also set aside $7 million so Indiana could continue to exempt federal home heating assistance from the state's 7 percent sales tax.

"How can you tax the poor?" asked Rep. Mara Candelaria Reardon, D-Munster.

Indiana provided the exemption for at least the past three years, but Republican Gov. Mitch Daniels' biennial budget plan doesn't include funding to prevent an average tax hike of roughly $22 for more than 150,000 low-income households.

The Democratic budget also would allow school boards in Gary and Indianapolis, which together host 27 charter schools, to decide whether to welcome new charters. It's a protectionist clause for Democrats who believe charters undercut public schools by siphoning students and state dollars.

"I do not see Gary schools voting for a new charter," said Rep. Vernon Smith, D-Gary. "I've said to Gary schools that they need to create their own charters, but they haven't taken my advice."

It will be difficult to convince Republicans who control the Senate to go along with the charter-school provision, particularly when federal officials have warned limiting charters could disqualify Indiana from some grants.

For now, the budget is drawing much bigger complaints from minority House Republicans. They say the one-year spending plan would consume all but $200 million of the state's $1.3 billion in reserves were it extended to a second year.

"I liken this budget to a credit-card budget -- spend now and pay later, and paying later will be a tax increase," said Rep. Jeff Espich, a GOP budget negotiator from Uniondale.

Candelaria Reardon accused Republicans of "crying wolf."

"Nowhere in this budget is there a tax increase," she said.