Indiana General Assembly
House of Representatives
NEWS RELEASE
Indiana House Republican Caucus
Room 401-6, Statehouse
Indianapolis, IN 46204
 
Contact: Tony Samuel
(317) 232-9887 or 1-800-382-9841
e-mail: tsamuel@iga.state.in.us

FOR IMMEDIATE RELEASE
 
Thursday, February 22, 2007

House Democrats Fail Standards of Success
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Honestly balance the budget with no fund transfers, payment delays, or gimmicks.
Failed-This budget used “sleight-of-hand” such as flat-lined Medicaid appropriation and not fully accounting “outside bills.”

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Pay Our Debts – Repay Cities, Towns, and Universities
Failed-Remaining $200 million in state debts to local governments revenue and provision included to prohibit Governor from repaying this debt administratively

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No General Tax Increases
Passed – No general tax increases are included.

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Limit spending growth to no more than revenue growth
Passed Conditionally-If “outside bills” that either reduce revenue or increase spending are not passed by the House, then this budget standard will be met.

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Freeze Homeowner Property Taxes for 2007
FailedThe budget does nothing to address a projected 14.5% homeowner property tax increase in 2007.

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No Diversion of Major Moves Funds
Failed-Major Moves Trust Fund monies are not appropriated in HB 1001 and $30M per year is diverted to non-Major Moves project spending in HB 1830.

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Fund 200 additional welfare caseworkers (of 600 promised in 2005 Session)
Passed

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Efficient allocation of K-12 funding (simplified formula; $ follow students, not institutions)
Failed-Proposed school formula does not simply the formula, but further complicates it.  Under this school funding proposal, 44% of all schools are funded by one of five new add-ons to the formula rather than being funded by the base formula. 

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Local Flexibility - Block Grants for Full-Day Kindergarten and other Local Options
Failed-Local schools are required to fund kindergarten programs only without local option.

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Limit university tuition increases to no more than inflation
Passed Conditionally-HB 1001 limits tuition growth to the rate of growth in family income. It is impossible to predict whether this proposed tuition constraint will be more or less restrictive than an inflation-based growth limit in the future.

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Fully Disclose Fiscal Impacts of Budget to Hoosiers
Failed-The budget fails to include realistic funding for Medicaid, prisons and non-budget spending.

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Provide 48 Hours to Review Budget
Incomplete

*List compiled by the House Republican Fiscal Staff