(STATEHOUSE) Feb. 22, 2007 –Today, House Democrats violated public trust by adding new spending language to the state budget bill without adequate public notice, without public hearing, and without public testimony. This extraordinary and unprecedented action highlights a budget that is unrealistic and unbalanced. The bill passed the House of Representatives on a party line vote.

 “As the majority party, House Democrat leaders have assumed a responsibility to adopt a balanced budget that lives within our means and adequately funds critical needs,” stated Republican Leader Brian Bosma. “Indiana deserves better than a budget that lacks vision and leadership.”

 Last week, House Republican Leader Brian Bosma (R-Indianapolis), along with other members of the House Republican Caucus, presented specific “Standards of Success” to ensure an honestly balanced budget that controls state spending and provides property tax protection for homeowners in 2007.

House Bill 1001 unsuccessfully addresses issues essential to Indiana’s economic development, public education needs, property tax relief, and local government assistance. The bill meets only two of the House Republican Standards for Success, conditionally completes two standards, and entirely neglects eight vital steps to an equitable budget.

The bill includes no new Medicaid spending, allowing relief for thousands of Hoosiers most in need to disappear through inflation and increased costs. Additionally, the bill appropriates zero dollars from the Major Moves fund, effectively undermining hundreds of projects on which the Indiana Department of Transportation is waiting to proceed.

“Hoosiers deserve an open and honest process through a budget bill that accounts for all new state spending. Over the last month, the House Majority continued to pass bills that spent millions of taxpayer dollars without being tracked by the House Ways and Means Committee or accounted for in the budget,” stated House Republican Fiscal Leader Jeff Espich (R-Uniondale). “Quite frankly, without tracking total spending, we have no way to know if the budget is honestly balanced. If our standards had been completely met, Hoosier taxpayers across the board would have benefited.”

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. 

A checklist review of House Bill 1001 and the House Republican Standards of Success is attached.