(STATEHOUSE) Feb. 15, 2007 – House Republicans today presented standards they will push for to ensure an honestly balanced budget that controls state spending and provides property tax protection for homeowners in 2007 with no general tax increases.  House Republican Leader Brian Bosma (R-Indianapolis) and House Republican Fiscal Leader Jeff Espich (R-Uniondale), along with other members of the House Republican Caucus, challenged Democrat fiscal leaders to live up to these standards and to match the accomplishments of two years ago when the first balanced budget in a decade was passed under Republican control.

“It is our pledge and our commitment to Hoosiers around the state to adopt a responsibly balanced budget that lives within our means and adequately funds critical needs,” said Representative Bosma.  “Over the past two years, our state has witnessed fiscal progress and will continue to do so if we act responsibly.  These standards, if met, will ensure that much needed fiscal responsibility.”

The House Republicans’ budget standards include the following: 

• Honestly balance the budget with no fund transfers, payment delays, or gimmicks
• Pay Our Debts – Repay Cities, Towns, and Universities
• No General Tax Increases
• Limit spending growth to no more than revenue growth
• Freeze Homeowner Property Taxes for 2007
• No Diversion of Major Moves Funds
• Fund 200 additional welfare caseworkers (of 600 promised in 2005 Session)
• Efficient allocation of K-12 funding (simplified formula; $ follow students, not institutions)
• Local Flexibility - Block Grants for Full-Day Kindergarten and other Local Options
• Limit university tuition increases to no more than inflation
• Fully Disclose Fiscal Impacts of Budget to Hoosiers
• Provide 48 Hours to Review Budget

A 14.5% property tax increase is projected for Hoosier homeowners in 2007 if no relief is offered.  House Republicans are seeking to protect Hoosier taxpayers as was done in 2006 when the average Hoosier property taxpayer saw no increase in their 2006 property taxes.  The recently proposed House Democrat property tax plan offered no immediate property tax relief.

“Our standards offer a proactive approach to protect all Hoosiers, including homeowners by placing a freeze on property taxes,” said Representative Espich.  “If our standards are met, Hoosiers across the board will benefit.”

The current House Republican budget showed a surplus of $371 million when the fiscal year ended on June 30, 2006.  Thanks to the lean budget, the state was able to repay $500 million of the debt owed to Indiana K-12 schools, cities and towns, and universities.  The current budget also eliminated a $600 million structural deficit. Total state spending was held to only a 2% increase, but statewide school funding was increased by 2.5% per year or $272.6 million for the current biennium, which amounts to nearly $200 per student.  Medicaid spending was increased by 5% each of the two years. 

Last year, House Republicans made a series of Pledges for Indiana’s Progress that included many of these standards to continue to move Indiana forward.  The pledges also included a block grant program to ensure that school corporations make decisions at the local level so that funds are allocated for the most needed programs.  The House Republican Standards for Success incorporates the local options that give school corporations the greatest amount of flexibility.