Dems budget bill advances to Senate

INDIANAPOLIS (WISH) - A state budget proposal passed the Indiana House of Representatives on Thursday. However, lawmakers are no closer to a budget compromise that will meet the governor's approval.

The special session of the General Assembly is headed toward another partisan confrontation between now and the June 30 deadline for a new budget. A government shutdown remains a distinct possibility.

The budget vote in the Indiana House came along party lines with majority Democrats on top. It’s for a 1-year spending plan that, Republicans say, uses up most of the Rainy Day Fund.

"In two years this state will be in fiscal crisis. In fact it may be in fiscal crisis at the end of 1 year," said House Speaker Brian Bosma (R-Indianapolis).

Rep. Jeff Espich (R-Uniondale) said, "The Democratic majority's about to pass a budget that's going to force a tax increase. Period, plain and simple."

During a debate that lasted more than 90-minutes the Democrats defended the plan that is a contrast to the governor's two-year budget proposal. It includes an increase in school funding of 2.5% compared to the first quarter of 1% hike recommended by Mitch Daniels.

"The governor gave up on our children. He gave up on our children by putting forth a funding plan that would cut schools dramatically," said Rep. Terry Goodin (D-Crothersville)

Rep. Scott Pelath (D-Michigan City) said, "We're standing up for our principles. I'm sorry we have different priorities than yours. We believe in helping the poor. We believe in public education."

The result is a budget the governor won't sign and an increasingly partisan atmosphere.

"I hope the goal of the governor is not to shut down this state. I have my suspicions but I hope that's his goal," said House Speaker Pat Bauer (D-South Bend).

The budget bill now goes to the Indiana Senate where the Republican majority will rework it beginning on Friday.

It will once again become a 2-year budget with spending levels similar to those recommended by the governor. It should pass the Senate as soon as Tuesday leaving as much as a week for final negotiations.