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Indiana Senate Unveils Alternate Budget Proposal

By Brandon Smith

Posted April 4, 2013

The Indiana Senate unveiled its budget proposal Thursday, nearly two months after the House proposed its first version of a budget.

The Senate budget includes a 3 percent income tax cut, which is substantially lower than Gov. Mike Pence's proposed 10 percent cut. But Sen. Luke Kenley (R-Noblesville) says Pence's goal of $500 million in tax cuts is met in Senate budget through income tax cut, eliminating inheritance tax, financial institutions tax cut and ongoing corporate income tax cut.

The budget does not anticipate triggering the automatic taxpayer refund.

The Senate proposal also increases K-12 school funding about 3 percent over the next two years. It boosts funding 2 percent in the first year and 1 percent in the second, which is about the same as the proposal in the House budget.

It allocates $112 million in roads funding to INDOT and $101 million to local roads. In addition, it puts away $200 million dollars each year into the Major Moves 2020 Trust Fund, which aims to help pay for projects including I-69 completion and making I-65 and I-70 6 lanes across the entire state.

This story will be updated.

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