By Dan Carden, Times of Northwest Indiana

dan.carden@nwi.com

INDIANAPOLIS | If school employees agree to forego all wage increases in 2010 and 2011, their school corporation would get added budget flexibility under legislation approved by an Indiana Senate committee Thursday.

Schools that impose the salary freeze would be allowed to transfer an amount equal to their state budget cut from money designated for other purposes into their operating fund.

"Everyone claims to be broke, but when you look at their fund balances, it's sometimes surprising," state Sen. Luke Kenley, R-Noblesville said.

The proposal requires all school employees, from janitors to the superintendent, remain at their current salary. Most school contracts include an annual pay raise or award more money for additional education.

Existing contacts would likely have to be reopened to impose a freeze.

State Sen. Earline Rogers, D-Gary, said that component of the proposal is likely to lead to battles between school boards and school employees.

"It sets up a kind of armed warfare that I will not participate in," Rogers said.

Representatives of Indiana teachers, school business officials and superintendents all testified against the measure.

Nevertheless, Senate Bill 309 was approved by the Appropriations Committee, 8-4, on a party-line vote. Every Republican voted for the measure, while every Democratic senator was opposed.

The legislation now moves to the full Senate for further consideration.

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