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House Unveils Budget That Strays From Pence's Proposal

By Network Indiana

Posted February 15, 2013

House Republicans unveiled a budget Friday that spends significantly more than Governor Pence has proposed.

Speaker Brian Bosma says the House budget earmarks more money for road funding than Pence‘s plan. He  says the House will also call for restoring school funding cuts made by then-Governor Mitch Daniels three years ago, and add money on top of that.

Pence has proposed a one-percent increase for schools. That would still leave them below 2010 levels.  For now, the budget will not include Pence‘s proposed 10-percent tax cut.

Bosma says legislators want to defer that decision until the state updates its economic forecast in April. Bosma says the budget will spend about one-percent less on operating expenses than the state takes in, but will dip into reserves for some one-time projects.

Under current projections, the House budget would leave the state with reserves between 10 percent and 12.5 percent, enough to trigger the state‘s automatic tax rebate if the economy does better than expected.

Pence‘s budget calls for a 15-percent reserve.

House Ways and Means Chairman Tim Brown says a committee vote is planned for Monday and a full House vote sometime after that.

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