Republicans shoot down Senate measure

Senate Democrats attempted to amend the two-year state budget Tuesday. Their $2.3 billion proposal would have increased higher education spending by an additional $84 million.\n"It all comes down to priorities," said Sen. Vi Simpson, D-Bloomington, the ranking Democrat on the Senate Finance Committee. "While we don't question the Republicans' sincerity or their desire to come up with a responsible, balanced budget, we do question some of their priorities."\nSimpson's amendment would have also spent $71 million more on public schools and $20 million more on home care for the elderly. But the lion's share of the $184 million proposal would have gone to higher education funding. \n"The Republicans said education was their No. 1 priority when they overhauled the House-passed budget bill last week," Simpson said. "However, they proceeded not to properly fund all schools throughout the state."\nUniversity officials have criticized the budget, which would increase higher education funding by 1.7 percent during the next two years. The Democrat-controlled House put forward a version that would have increased it by about 4 percent. \nWith inflation expected to outpace funding increases, the Indiana Commission for Higher Education estimates the Bloomington campus will lose $1 million a year, driving tuition up.\n"It's a disappointment," said Mike Baumgartner, the commission's associate commissioner for financial affairs. "It's certainly far below what the commission recommended. But we realize there are different fiscal circumstances than when we made our recommendations."\nTo cover operating costs, the commission recommended an 8.5 percent increase in the first year and a 6.2 percent increase in the second. The increases would have been spent mostly on keeping faculty salaries competitive, Baumgartner said.\nTo retain faculty and cover expenses, Baumgartner said tuitions at state colleges and universities would have to be increased by about 4 percent under the Senate budget.\n"A few campuses would take a hit under the Republicans' budget," Sen. Bill Alexa, D-Valparaiso, said. "What this amounts to is a tax increase on the middle class."\nThe Indiana State Teachers Association bristled at the Senate budget, which it said doesn't meet the needs of public schools. The House proposal would have increased spending on public schools by 4 percent during the next two years, while the Senate increases average out at 3.2 percent.\n"With rising energy and insurance costs, these school corporations cannot maintain current programs and staffing levels," union spokesman Dan Clark said. "Larger class sizes, program elimination and teacher layoffs are the certain results of this budget."\nThe largest teachers union in Indiana insisted the state delay accountability standards set to take effect this summer if schools don't receive adequate funding.\n"If we cannot support teachers and students in their efforts to improve learning, then we should not punish them for the failure of the General Assembly to provide the necessary resources," Clark said. \nSenate Democrats didn't expect their amendment to gain any ground in the Republican-controlled chamber. \n"We hoped to play to the citizens of Indiana," said Rick Gudal, press secretary for the Senate Democratic Caucus. "We had some healthy discussion on the floor for about an hour, and that's what we hoped to start -- healthy discussion."\nBut they took pains to finance their proposed spending increases with tax restructuring. Democrats proposed shifting a $12,500 property tax deduction to an income tax deduction, which Gudal said would free up $190 million.\n"This is completely fiscally responsible," he said. "We're coming up with the money we're proposing to spend."\nThe Senate Democrats hope to persuade their colleagues across the aisle that they can avoid scaling back on spending without tapping into the state's emergency rainy day fund, Gudal said.\nHouse Democrats and Senate Republicans will meet in conference committee to settle their differences. If they can't work out an agreement by May, Gov. Frank O'Bannon must convene a special session, which could stretch into June.