By Karen Caffarini, Post-Tribune correspondent
INDIANAPOLIS -- When Indiana's General Assembly passed a two-year, $28 billion budget just hours before deadline Tuesday night, Gov. Mitch Daniels declared Hoosier taxpayers the big winners. Lawmakers had accomplished what several other states could not- -- they passed a budget that included no tax hike, left a $1 billion surplus and averted a shutdown of state offices.
But that doesn't mean everyone is happy with the end result.
Like with any budget, there were winners and losers, and some who won a little, but not as much as they would have liked. Northwest Indiana has all three.
Winners
1. State and casino workers, gamblers and state park visitors. No state workers went a day without pay and no Hoosier was unable to bet on the lottery or slot machines or visit state parks, since the General Assembly was able to beat the deadline.
2. Businesses and homeowners along the Little Calumet River. About two decades after work began to alleviate the flooding along the river, it should finally get completed. The state appropriated the full $14 million needed to get the job done. Local legislators pushed hard for the funds, and after paddling along the river's edges during the last flood, Daniels concurred.
3. Charter schools, and public schools with increasing enrollment. Under the revised school formula, schools with growing enrollment, such as Crown Point, Lowell and Valparaiso, will get an increase in funds. Also, current caps on the number of charter schools are being discontinued, making Indiana eligible for federal eduction grant money, said Daniels, who added "This is a huge step forward for education."
4. Gary/Chicago International Airport. The long-struggling airport could enter into a public/private lease, with a portion of the money it generates going to the city of Gary coffers, under language approved by the legislature. Sen. Ed Charbonneau, R-Valparaiso, said this should help the airport move forward. "This is a jewel sitting in Gary that we haven't been able to polish," he said. Daniels said being leased to a private company just might be a shot in the arm the airport needs, but acknowledged this may not be the best time to seek a partner.
5. Higher education. Colleges and universities in the region -- including Ivy Tech College Gary, Purdue University Calumet, Indiana University Northwest and Purdue University North Central -- will receive millions of dollars each for capital improvement projects. Higher education across the state received a total of $650 million for building projects, which also makes construction workers winners.
Losers
1. Public schools with declining enrollment. Under the new school formula, schools in urban and rural areas with declining and stagnant enrollment will get less dollars. Gary and East Chicago are especially hit hard, losing $12 million and $3 million, respectively. Those pushing for less funds say the money is going to bureaucrats, not students. But Sen. Earline Rogers, D-Gary, said students in these areas, many of whom have single or foster parents -- have needs students in other areas don't have, such as social work, after-school care and even laundry facilities.
2. Persons needing energy assistance. The new budget lifts a prohibition from charging a 7 percent tax on low-income homeowner energy assistance program (LIHEAP) funds, which provides money to those who qualify to help pay their heating bills. Sen. William Crawford, D-Indianapolis, said this means there will be 7 percent less money to be divvied out to "the poorest of the poor."
3. Gambling facilities. The majority of lawmakers were loathe to provide assistance to casinos and horse tracks that are caught in a financial bind in this flagging economy. Nor were they willing to allow Gary to move one of its casino licenses to a land-based site. Frustrated, Rep. Charlie Brown, D-Gary, took it off the table in hopes of getting more money for education and a teaching hospital.
4. Teachers. Although the number was cut in half from Gov. Daniels' budget, there are still 2,000 teachers in the state who could lose their jobs under the passed budget.
Mixed reviews
1. Regional Transportation Authority . As a result of last-minute wrangling, there will be a referendum in November to determine if residents in Lake, Porter, LaPorte and St. Joseph counties want to create a transit authority with taxing power in order to expand regional buses and the South Shore train. Reps. Chet Dobis, D-Merrillville, and Ed Soliday, R-Valparaiso, who wrote the original bill without a referendum, worry that bringing it to the voters will kill the expansion. But Charbonneau sees it as a positive step. "We need to be advancing the ball and this is finally a step to get it going," he said.
John Parsons, with Northern Indiana Public Transportation Commuter District, said the board of directors has not had an opportunity to view the language, and does not have a statement at this time.
2. Newton County. At the last minute, lawmakers brought back a film tax credit, but it is half the original $5 million a year, at $2.5 million a year. Screenwriter Anthony Pizzo was seeking the full $5 million a year for two years of filming a new movie about the history of the Indianapolis 500 near Lake Village in Newton County. It is unknown if this will drive the film company to another state that offers more in tax relief.