FOR IMMEDIATE RELEASE
Meeks: Senate Budget Proposal ‘Balanced, Realistic'
(Statehouse) -- A two-year state budget proposal presented today by Senate Republicans is “both balanced and realistic,” according to its chief author, State Sen. Bob Meeks (R-LaGrange).
Meeks chairs the Senate Appropriations Committee, which this morning passed the proposal
7 to 4.
“This is a truly balanced budget that keeps state government living within its means. It prioritizes the education of our children and grandchildren, strongly supports higher education and repays our state's longstanding debts,” Meeks said. “Most important, this budget accomplishes all of this without a general tax increase on Hoosiers.”
Meeks said the $26.3 billion two-year budget is the culmination of months of discussions with state agencies, schools and universities, fellow lawmakers and constituents across the state. It takes into consideration earlier budget proposals from Gov. Mitch Daniels and the Democrat-controlled House of Representatives.
Balances Without Gimmicks. Pays Back Colleges, Locals.
Focuses on Education. Builds Reserves.
“We went into this process with four goals in mind,” Meeks said. “First, we wanted a truly balanced budget with no games and no gimmicks. Second, we wanted to pay back approximately $285 million owed in delayed payments to universities and local government. Third, we wanted to focus on education – both K-12 and higher education. Finally, we wanted to grow our reserves beyond $1 billion in preparation for potentially leaner times. This budget accomplishes those goals.”
Here's a breakdown of the Senate Republican budget proposal:
K-12 Education
Local public schools would see a $207.6 million or 3.5 percent increase in 2008 and a $214.1 million or 3.4 percent increase in 2009. Additional funding would be provided for educating students eligible for the federal free lunch program. Full-Day Kindergarten would be phased-in through expansion of the existing state FDK grant program, so as to avoid jeopardizing federal Title 1 funding that cannot be used on otherwise state-funded projects. FDK grants would increase from $8.5 million in 2007 to $33.5 million in 2008 and $58.5 million in 2009. Charter schools, which are public schools, would continue to be funded like other school corporations. Computer-based “virtual” charter schools would be limited for now to the two already sponsored by Ball State University . Remediation and free textbooks for students in poverty would be funded at 2007 levels. Enrollment growth would be fully funded rather than phased-in. Funding impacted by enrollment declines would be gradually reduced over five years. Grants for Limited English Proficiency students would increase from $700,020 to $6,929,157.
Higher Education
Colleges and universities would be repaid $62.2 million owed since 2002. In addition, they would see a $60.2 million or 4.1 percent increase in 2008 and a $73.5 or 4.8 percent increase for 2009. Another $9.2 million would go toward campus building projects. Bonding authority would be granted for $261.1 million in capital improvements. Student assistance would be increased $16 million or 7.3 percent in 2008 and $9.8 million or 4.2 percent in 2009. Each high school across Indiana would be entitled to grant at least one $5,000 Hoosier Hope Scholarship totaling $20 million from lottery franchise revenues. Colleges and universities would share $40 million from lottery franchise monies to attract and retain world-class scholars and researchers whose work leads to marketable products and job creation. However, if the lottery is not franchised, both the $20 million for Hoosier Hope Scholarships and $40 million for the Indiana Life Sciences Initiative would vie for funding from the state's general fund.
Property Tax Relief
Funds the Senate GOP's property tax relief and reduction plan contained in HB 1478. Includes $122 million for immediate property tax relief through additional homestead credits in 2007, the state permanently assuming 100 percent responsibility for all school general fund expenses, $2.2 million for juvenile detention costs and $190.6 million to share with locals the cost of child welfare increases. The budget also funds a new Circuit Breaker Relief Appeal Board to help resolve property tax issues.
Economic Development & Transportation
Business recruitment and job creation would be bolstered through a $6 million High Growth Business Incentive Fund used to close deals with hot prospects, $750,000 in new monies to the Office of Tourism for increased marketing and $750,000 to the Arts Commission for local grants. Indiana 's Life Sciences Initiative would be supported by $40 million in lottery franchise funds. A new mortgage foreclosure counseling project to improve fiscal literacy and reduce Indiana 's high rates of foreclosures and personal bankruptcies would be funded at $400,000 each year. Funds the 21 st Century Research and Technology Fund at $69.75 million to promote job creation. Appropriates the recommended $471 million in 2008 and $661 million in 2009 from the Major Moves Fund for major highway projects.
Health & Human Services
Medicaid funding for low-income healthcare would be increased 5 percent each year or $73.4 million in 2008 and $77 million in 2009. Two hundred additional caseworkers would be funded for the Division of Child Services at $10 million in 2008 and $12.8 million in 2009. Funding for the Indiana Youth Service Bureau would be increased $400,000 in 2008 for counseling, after-school programs and work-study opportunities. Funds a new $600,000 statewide system for recording errors by healthcare providers. Funds CHOICE (Community and Home Options to Institutional Care for the Elderly) at $48.8 million to continue services.
General Government
State and county courts would be provided requested increases of $7 million in 2008 and $2 million in 2009. Fully funds all debt service and leases of state government. Provides $23 million each year to transition state employees to Medicare. Increases funding by $1.2 million over two years to Guardian Ad Litem to train and pay advocates for children in need of services. Adds $2 million for data warehousing projects for state agencies.
Public Safety
Increases salaries for DOC corrections officers by $12.7 million or 8 percent in 2008. Increases funding for community corrections by $11 million in 2009 and adds 39 new parole officers. Increases by $5 million each year salaries for the Indiana State Police, Capitol Police, and DNR Conservation Officers. Increases appropriations for the Muscatatuck Urban Training Center by $2.6 million each year to train Indiana National Guardsmen on hand-to-hand combat in urban settings. Adds $1.2 million for the Adjutant General's Youth Challenge Program to help combat high school dropouts. Appropriates $2 million from fireworks fees for regional public safety training and $1 million for state disaster relief. Authorizes $30 million in bonding authority to Purdue University for addition to the Animal Disease Diagnostic Laboratory.
Conservation & Environment
Funds the Heritage Trust at $3 million in both 2008 and 2009 for Department of Natural Resources land acquisition. Adds $300,000 to DNR's budget for increases in fuel and utility costs. Funds capital projects for DNR, including restoring the Tippecanoe Battlefield Fence, dredging Cedar Lake, and upgrading campgrounds, marinas, nature centers, pools and wastewater systems. Provides $450,000 each year to increase state inspections of confined animal feeding operations (CAFOs).
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