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

INDIANPOLIS | The Indiana House and Senate convened Monday afternoon, but budget negotiators had not yet struck deal for rank-and-file legislators to vote on with 33 hours remaining before the current state spending plan expires.

School funding, which accounts for about half of the $28.5 billion Indiana can afford to spend over the next two years, continues to be the major sticking point.

"It's about all schools, especially the ones that are hurt (by a proposed Senate Republican budget). And the ones that are hurt are poor rural schools and urban schools," said Democratic House Speaker Pat Bauer, D-South Bend, "We are closer on the number."

Lawmakers will return to session this evening, but it appears unlikely a budget will be voted on tonight. Republican Gov. Mitch Daniels has warned that most of state government will grind to a halt a 12:01 a.m. Wednesday if lawmakers don't send him a new spending plan.

"People know that we're here to do our job and that we're serious about it," said Rep. Mara Candelaria Reardon, D-Munster. "I'm pretty optimistic that we're going to get our job done. We need to get it done, and we're going to get it done."

In lieu of a budget, Sen. Earline Rogers, D-Gary, would not rule out a so-called continuing appropriation that would allow Daniels to continue operating state government at current funding levels while the Republican-led Senate and Democratic-controlled House continue to haggle, be it for a few days or several weeks.

House Democrats this month passed a one-year budget that would "hold harmless" all of Indiana's nearly 300 school districts, meaning even those with declining enrollment would not lose state dollars.

Senate Republicans instead approved a two-year spending plan giving schools average funding boosts of 0.5 percent a year. East Chicago, Gary and other shrinking districts would get more money per student but see overall funding losses.

Rep. Charlie Brown, D-Gary said "there'd have to be a gun to be my head" for him to vote for a budget that doesn't include something for Northwest Indiana. He said $3 million to begin design work on a $400 million teaching and trauma hospital for Gary would be a start.

If lawmakers don't approve a budget by midnight Tuesday, Daniels said most of Indiana's 30,900 state workers will be furloughed and state parks, Bureau of Motor Vehicles branches and other facilities will be shuttered. The five Lake Michigan casinos would be forced to close, Daniels said, because the state would not provide gaming agents to patrol the vessels.

The governor said he would preserve essential state services, meaning prisons would remain staffed and state police patrols would continue in the event of a shutdown. County court officials are waiting on guidance from Indiana Supreme Court Chief Justice Randall Shepard.

"I can't speak for everybody, but I'm going to be here Wednesday," said Judge John Pera, chief of Lake County Superior Court. "We can't let the wheels of justice just grind to a halt."

House Speaker Bauer, who is known for a wry sense of humor, was asked if the public has been pressuring him to avoid a shutdown.

"Most people don't even know we're here," he said from the House chamber.

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