Published: June 29, 2009 09:46 pm         

‘Possible’ deal on budget

Indiana speaker says House is step closer to a vote

INDIANAPOLIS — Democratic House Speaker Patrick Bauer announced a possible agreement with Republican state lawmakers on a new state budget early Monday night.

“There are a few things that might have to be adjusted. As I said, we are a step closer to having something. We are a step closer to having a vote. Whether that vote succeeds or not is another story,” said Bauer, whose fellow Democrats control the House 52-48.

The House adjourned shortly after Democratic and Republican members met privately and planned to meet again today. The Republican-controlled Senate was scheduled to reconvene later Monday, and there was speculation that the chamber could vote on a new two-year spending plan.

Lawmakers must pass a new state budget or a stopgap funding measure before midnight tonight, or Republican Gov. Mitch Daniels has said much of state government would shut down. He said he would make sure essential services such as the state police and prisons continued to operate, but most state offices would close Wednesday and most of the state’s 30,900 full-time employees would be furloughed.

The General Assembly did not pass a new budget by the regular session deadline of April 29, forcing a special session that began June 11.

Bauer, D-South Bend, said it would take support from House Republicans to pass a budget plan in that chamber.

“This is a very Republican-flavored bill,” he said. “They’ve made some adjustments, but if you’re at the flavor of the other party, they’ve got to help pay for the drink.”

At one point during their private meeting, House Republicans could be heard cheering and clapping.

Bauer said earlier Monday that the parties remained at odds over how billions of dollars would be distributed to the state’s nearly 300 public school districts.

A one-year, $14.5 budget bill passed earlier by House Democrats would give schools a statewide average increase of 2 percent next year and guarantee that no district receives less than they got this year.

The two-year, $28.5 billion plan passed by the Senate would increase state spending for schools by about 0.5 percent in each of the next two years. Many urban and rural districts losing enrollment would see cuts, while some growing suburban districts would see big increases.

Bauer reiterated later that education was very important to House Democrats.

“We thought the governor and the budget sent over (from the Senate) cut thousands of teachers,” Bauer said. “We put more money into the school formula.”

Senate Appropriations Chairman Luke Kenley, R-Noblesville, said earlier Monday that negotiators were discussing a two-year spending plan and progress was being made.

“We’re going to get it done. We’re going to meet the deadline,” Kenley said. “The Legislature’s not going to abdicate its responsibility.”

Bauer said the plan to be voted on did not have a limit on charter schools, which House Democrats had sought earlier. He also said there was some money to provide tax credits for people who donate to scholarship organizations that allow students to attend private schools — something else Democrats did not favor.

The Republican-controlled state Board of Finance was prepared to meet in an emergency session Wednesday to potentially transfer hundreds of millions of dollars to keep essential services such as prisons and state police running if a new budget or temporary funding measure was not enacted on time.

The Daniels’ administration also has said unemployment benefits, child support payments and welfare assistance would continue to be rendered for those already eligible.

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Associated Press Writer Deanna Martin contributed to this report from Indianapolis.