Indiana Senate advances state budget proposal
The Indiana Senate has endorsed a state budget proposal that boosts school funding by 2.3 percent over the next two years while easing some cuts to districts with shrinking enrollments that were part of the House spending plan.
Senators voted 42-8 Wednesday to advance the two-year spending plan into final negotiations with House budget writers.
The Senate Republican plan spends about $31.5 billion over the next two years, with a projected state surplus of nearly $1.9 billion. Those figures are similar to what House Republicans approved in February, but the Senate phases in over five years school funding changes that direct more money to growing suburban districts.
Democrats say they hope for continued improvements in school funding as a final budget plan is developed.
Meanwhile….. one of Indiana’s fiscal leaders is warning that some disappointing news could be coming for the new state budget.
An updated tax revenue forecast will be presented Thursday to the State Budget Committee. That projection is a key element as lawmakers work to reach agreement on a new two-year state budget by the General Assembly’s adjournment deadline in a couple of weeks.
Senate Appropriations Committee Chairman Luke Kenley says he expects the forecast will show slower growth in state tax collections. That could force cuts to be made from spending plans that lawmakers are considering.
State reports show tax collections have been below expectations for seven of the past nine months. March’s figures leave state revenues about $109 million, or 1.1 percent, below projections for the current budget year.