State lawmakers released a budget proposal late last week. The highlights of the budget are below.
Tax Relief and Job Creation
- Cuts individual income tax rate by 5 percent (3-percent cut beginning in 2015 and another 2-percent cut beginning in 2017)
- Eliminates state inheritance tax, retroactively effective to Jan. 1, 2013
- Includes funding for vocational education and workforce development initiatives
Education
- Increases K-12 funding by $333 million during the biennium (2-percent increase in FY 2014 and 1-percent increase in FY 2015)
- Increases university funding by more than $100 million per year
- Increases student aid by $75 million during the biennium
Roads
- Increases road and infrastructure funding by $200 million per year and sets aside another $400 million during the biennium for future transportation needs
Child Protection
- Increases funding for the Department of Child Services by $35 million per year
- Provides $10 million per year for school resource officers (contained in SB 1)
Health Care
- Transfers $250 million in FY 2014 to the Medicaid Contingency and Reserve Account
Paying Taxpayer-Funded Debt
- 100 percent of excess surplus in FY 2013 goes to Pension Stabilization Fund
- Pays back $91 million in charter school loan
- Provides $215 million cash funding for university capital projects
In addition to the budget, Sen. Scott Schneider, R-Indianapolis, a supporter of the budget, pointed out a few noteworthy bills passed during the 2013 legislative session:
HB 1427
Halts the implementation of new state standards known as the Common Core until the state holds public meetings to study whether they are rigorous standards that adequately prepare students for future success.
SB 517
Creates a five-year pilot program to review property-tax assessments in townships where residents have noticed higher than normal assessed value growth. The program would look specifically at Center, Wayne and Washington townships in Marion County.
