Published: June 26, 2009 01:54 pm      

Indiana Gov. Daniels calls for a compromise in Southern Indiana

Governor visits New Albany to talk about budget

NEW ALBANY — With just a few days left before time runs out on the state’s spending plan and no new budget set to take its place, Gov. Mitch Daniels is touring the state — stopping in New Albany on Thursday — to push for what he calls the “Senate compromise” budget to pass the House.

That compromise — which adds up to $28.5 billion over two years — is in a conference committee, consisting of representatives from the Indiana House and Senate, to allow the sides to work out their differences, said Rep. Steven Stemler, D-Jeffersonville.

Daniels bragged on the compromise Thursday, saying it allows for a small increase in

K-12 education spending while other states are cutting. He said the budget does call for spending some of the state’s reserves, reducing that to about $1.02 billion.

Though not everything on the wish list would see the same fate.

“There is very little in the state budget that I don’t think is useful and worthy. But, the question is, when money is very tight — as a family, as a business, as any enterprise — you have to decide what’s most important. For us, it’s public education and public safety,” Daniels said at a press conference at One Southern Indiana. “Those things that are left on the board may have to take a step back, if only for a year or two.”

Daniels said cutting back on spending is necessary because revenues are down. Daniels said the projected revenue collection for 2009 is about $13 billion. Last year, he said the state brought in just more than $14 billion.

Stemler said he agrees that times are tough and resources have to be allocated carefully. However, with the economy being down, more people need to be educated so that they are prepared to work once the economy picks back up.

He said in the Senate’s budget formula, dollars follow the child when it comes to education. He said that means schools with falling enrollment will be hurt, yet still have to provide services.

Stemler added Democrats and Republicans are in favor of scaling back school building projects.

Though he said it’s not all about what he wants.

“I’m supportive of compromise and working out our differences prior to our deadline of Tuesday night at midnight,” Stemler said.

Daniels said he feels that the Senate compromise budget would pass the House, if given a chance.

House Speaker B. Patrick Bauer, a Democrat, said that budget doesn’t include enough funding for schools, which would cause teacher layoffs and program cuts. He said he’d like to see it build jobs, too.

However, Daniels said what Bauer wants would end up hurting the state in the end.

“... we won’t let Speaker Bauer blackmail us into bankruptcy and we will not let him bully us into a tax increase,” Daniels said, adding that when families are hurting financially, taxes shouldn’t be increased.

Bauer said that kind of rhetoric is not needed.

“I think bombastic comments and over-the-top rhetoric is not the way to get this done. It’s not us against him. We’re trying to help children,” Bauer said, adding that the House budget works to keep more teachers in their jobs and create other jobs throughout the state. “I’m not going to do any name calling. He should be here in Indianapolis negotiating with the rest of us.”

Daniels said he is willing to compromise on the budget, too, as long as it meets certain parameters, such as leaving at least $1 billion in reserves, doesn’t include tax increases and uses one-time funds for one-time purposes.

However, if no compromise can be reached by midnight Tuesday, Daniels said the government doesn’t have to shut down. He said there is a fallback resolution, where the state could operate on the current budget.

“It’s not the best way to do business,” Daniels said. “We should revise and update our priorities, but this takes away any excuse or any threat really of a shutdown.”

As for what the special session is costing taxpayers, Daniels said he’s not sure of the exact figure.

“It’s not cheap. This thing could have ended days ago if [Bauer] would have put the Senate compromise on the floor for a vote,” Daniels said. “We’re already at two days of unnecessary spending. I guess we’ll have some more.”

Though, in the end, he said Hoosiers will still yield savings, saying the budget proposed in April would have used up the state’s reserves and had a $1 billion deficit entering the next budget.