Budget woes plague legislators

INDIANAPOLIS -- Legislators crept toward compromise on a two-year state budget Thursday, but it seemed doubtful they would meet a self-imposed goal of finishing business and adjourning the session by midnight.\nAmong other things, Republicans and Democrats were hashing out details of a school funding formula, which will determine how billions of dollars are doled out to the state's 294 public school districts.\nBut House Minority Leader Brian Bosma, R-Indianapolis, said the parties had reached a tentative agreement on the session's other big issue -- economic development.\nHe said the package likely would be rolled into the budget bill, and included a "substantial investment" in fostering research-and-development ventures between businesses and universities and moving their products to market.\n"If this is adopted, this will be the strongest economic package adopted in Indiana in the past two decades," Bosma said.\nMeanwhile, Gov. Frank O'Bannon warned lawmakers that if they did not provide money to open and staff new prison cells, he would consider vetoing any bill that enhances criminal sentences. There were several such bills still alive.\nDemocrats who control the House and Republicans who rule the Senate passed budget bills that would deny O'Bannon the $26 million increase he is seeking for prisons, and they have indicated little interest of including it in a final compromise.\n"If there is to be no additional funding for Department of Correction expenses in the next biennium, it would be irresponsible for me to sign legislation that significantly increases the number of persons committed to the Department," O'Bannon said in a written message to the Senate.\nIt was possible lawmakers would work Friday and into the weekend if necessary to finish their work, even though the statutory deadline for ending the session is not until midnight Tuesday.\nThe only constitutional mandate they have is to approve a two-year budget, but O'Bannon and many legislators from both parties have pressed for an economic-development package as well. They say it is necessary to jump-start Indiana's lagging economy and position the state for long-term job growth.\nHouse Republicans have touted economic development as their top priority, and their needed support to pass a budget gave them additional bargaining power on that front.\nAlthough Democrats control the chamber 51-49, one of their members -- Rep. Ben GiaQuinta of Fort Wayne -- remained unavailable to vote Thursday because of health reasons. That has left Democrats needing at least one GOP vote to pass a budget, since it takes 51 votes to pass any bill.