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Balanced Budget Amendment Approved

By Indiana Public Media News Staff

Posted April 30, 2015

Changes to the proposed balanced budget amendment swayed some lawmakers to support the measure Wednesday.

The resolution would prohibit the legislature from spending more than it collects in taxes. It passed both chambers with bipartisan support.

Proponents of the legislation, such as its author Sen. Brandt Hershman, R-Buck Creek, say it will provide fiscal guardrails for future budget crafting.

But critics of the resolution note that Indiana's constitution already prohibits the state from incurring debt.

Rep. Pat Bauer, D-South Bend, calls the effort a gimmick.

"It's nothing more than a mailer that you send into the ballot box to say, oh boy we are good boys and girls because we really, really want a balanced budget even though we've had one since the canals broke the states years ago," Bauer says.

But before the session came to a close, clarifying language on funding public pension liabilities and the ability to use state reserves as income convinced some opponents to support the amendment, including Rep. Ed DeLaney, D-Indianapolis.

"If we have to do this, even though we don't need it, this is a better way to do it than we did it last time," DeLaney says.

The amendment must now pass a separately elected assembly before it can appear on the ballot for the public's consideration.

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