Legislative battle lines drawn as special session approaches

Daniels laid out his budget plan last week, and the Democratic-controlled House Ways and Means committee hit back Tuesday, laying out what they saw as the shortcomings in Daniels' proposal, focusing on its treatment of K-12 education.

Ways and Means Chairman Rep. Bill Crawford, D-Indianapolis, said House Democrats will abide by the ground rules for an acceptable budget that Daniels laid out last week. Those include no tax increases, maintenance of a rainy day fund of at least $1 billion, no additional spending added to one area of the budget without equal spending being reduced elsewhere, and the restriction of stimulus dollars for use toward one-time purchases.

Within that framework, however, House Democrats are proposing to spend an additional 2 percent on every K-12 school in the state, not including stimulus dollars. Under Daniels' proposal, schools would see an average 2 percent increase including stimulus and other federal money directed toward schools.

Another main difference is that the House is proposing a "hold harmless" provision, meaning that no school will receive fewer state dollars under the next budget than they did under the current one.

Daniels' plan would increase per-pupil funding for every child, but for 25 schools in the state whose enrollment is expected to decline over the next two years, they would receive a cut in the number of state dollars directed to them under Daniels' budget. Among those 25 districts are schools in Gary, East Chicago and Michigan City.

"We have to start fresh," said Rep. Scott Pelath, D-Michigan City. "The governor presented a budget that just decimated a number of school districts in Indiana, and we just can't accept it."

The committee heard a parade of school superintendents testify, all advocating for additional funding. Democrats stressed that they were not going to "abandon this state's most precious resource" -- its kids -- while Republicans kept asking, in a budget that is $1.1 billion smaller than it was expected to be, where the additional money was going to come from.

"If you're going to live by your word, and your word is that what you spend you cut, (will) one of you today say ... where do you propose to cut?" asked Rep. Jeff Espich, R-Uniondale. "Maybe by Friday you'll have time to total up your spending and prepare a list of things you're going to cut."

One line item slated for reduction is the Little Calumet River flood control project, which would receive $14 million under Daniels' plan and $9 million under the House proposal.

Democrats do not yet have a formal budget to present. Something in bill form could be available as soon as today, to be formally introduced during the special session on Thursday.

The Ways and Means committee plans to start hearings on the Democratic budget on Friday morning.

Including stimulus money, the state budget will total $28.5 billion over the next two years.