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GOP Praises Passage Of Budget, Democrats Call It Inadequate

By Brandon Smith

Posted April 27, 2013

The Indiana General Assembly adopted a two-year, $30 billion budget, one Republicans say contains the largest tax cut in state history, but Democrats say the tax cut is an illusion.

The budget bill contains significant increases in both education and roads funding. Money for K-12 schools grows by 2 percent in the first year and 1 percent the second, while also including $30 million in performance funding the second year.

Roads dollars are boosted by $215 million in each year of the budget, split between the state and local governments.

The budget also more than $1 billion in tax cuts over three years, including a 5 percent income tax cut, elimination of the inheritance tax and continued reduction of the corporate tax.

House budget author Tim Brown says it does all that while maintaining fiscal integrity.

"We're paying off bonds," he says. "We're having a structural surplus and we're having reserves in the bank at about 12.5 percent so we that can be prepared for the future."

But Rep. Greg Porter (D-Indianapolis) says the budget is woefully inadequate.

"A budget, from our perspective, with no job creation, doesn't grow the middle class, doesn't fund public education adequately," he says.

Governor Mike Pence praised the budget as one that successfully limits spending while saving for the future and providing tax cuts to Hoosiers.

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