INDIANAPOLIS (AP) - The Democrat-led Indiana House has approved a new state budget plan, which now heads to the Republican-ruled Senate for a major overhaul.
Senate leaders will detail their budget proposal in a committee meeting Friday, and the budget could get a vote in the full Senate next week. Senate leaders say they will revamp the spending plan to be more in line with a budget proposed by Republican Gov. Mitch Daniels before the Legislature's special session began last week.
Daniels' proposal called from about a 4 percent decrease to high education funding. However, the Democrats proposed budget would increase high education funding by 2 percent.
"We simply need to adjust our spending levels to reflect the economic realities we face as a state," said Senate President Pro Tem David Long, R-Fort Wayne.
The House voted 52-48 Thursday to approve a one-year budget Democrats said would increase state spending on schools by 2 percent and boost funding for higher education. But outnumbered House Republicans said the proposal spends too much money.
"The only people out there to pay for government spending is the taxpayer," said Rep. Jeff Espich, R-Uniondale. "And if the government spends too much, the taxpayer has to pay more."
Senate Appropriations Chairman Luke Kenley, R-Noblesville, said he hoped the Senate budget released Friday would be viewed as a compromise between the governor's budget and the one suggested by House Democrats. He said it was possible for lawmakers to reach an agreement before the current budget expires June 30.
"Although you're starting from two enormously different documents, every subject contained in both documents has been a subject of discussion already," Kenley said. "This is a doable proposition. The alternative, which is not to have a budget, we don't think will be acceptable to either party."
The Senate may change the budget to more closely resemble Daniels' proposal, but Democrats hope it isn't a carbon copy.House Democrats said Daniels' budget outline, which relied heavily on federal stimulus money to provide schools with more money, would devastate urban and rural school districts.
"He gave up on our children," said Rep. Terry Goodin, D-Austin. "The governor's plan was a sham."
Senate leaders said their budget priorities are avoiding a general tax increase, protecting education funding, reducing state spending as revenue drops, keeping some state reserves and using stimulus money for one-time expenditures.
Education spending is a top priority for House Democrats. House Speaker Patrick Bauer, D-South Bend, said he hopes Senate leaders making changes to the budget will be careful to help schools, not hurt them.
"This budget that we have given them is the most reasonable approach," Bauer said. "I hope they work on it in a positive way."
Lawmakers ended the regular legislative session in April without passing a budget, forcing a special session that began June 11. If legislators don't come up with a new spending plan before the current budget expires, much of state government could be shut down.
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