STRAIGHT FROM THE SENATE

Senate Budget Adds $150M for K-12,
Statewide Full-Day Kindergarten,
Rewarding Best Teachers 

School students are the big winners in the Indiana Senate’s proposed $28.2 billion two-year state budget, with $150 million being added for K-12 tuition support, full-day kindergarten (FDK) and performance-based pay raises for classroom teachers.

State Sen. Luke Kenley (R-Noblesville) unveiled the Senate version of the state budget on Monday, just one business day after new revenue forecasts showed Indiana is expected to collect an additional $762 million over previous projections. Kenley, chair of the Senate Committee on Appropriations, and other Senate fiscal leaders worked last weekend to update Indiana’s balanced fiscal blueprint, which is both frugal and forward-thinking.

As Senate President Pro-Tem, I joined Gov. Mitch Daniels and House Speaker Brian Bosma (R-Indianapolis) late last week to welcome news of increased sales and income tax revenues due to Indiana’s improving economy. We pledged to use part of the new monies to fund the education priorities proposed and passed on Monday.

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Under the Senate’s budget bill, other new revenue would be set aside for outstanding state obligations like unfunded pensions and restoring the state’s reserves.

Indiana’s revenue numbers are good news and show our Hoosier economy continues to recover from the national recession, but as Gov. Daniels has emphasized, this is no reason to relax our fiscal discipline. We hope all lawmakers join us in this effort to invest in Indiana’s future, yet retain much of the revenue for reserves and other state obligations – a course that has proven prudent in this volatile global economy where so much around the world is out of our control.

Here are other highlights of the Senate’s proposed state budget, which passed out of committee by a vote of 8 to 3:
K-12 Education: At a time when many states are contemplating education cuts, Indiana Senate Republicans hope to increase the statewide average per pupil spending over the biennium. The largest portion of the increased investment – $76.2 million – will be distributed to schools via the state funding formula. The remaining new dollars will go to FDK, performance pay for teachers, start-up costs for public charter schools and non-English speaking programs. In all, the Senate budget plan allocates about $7.3 billion to public K-12 in 2012 and $7.4 billion in 2013.

Higher Education: Under the Senate budget plan, higher education receives more than $1.4 billion in both 2012 and 2013. The plan allocates $61 million to award positive outcomes like improving on-time and early graduation rates. Campuses would receive $52 million for repair and rehabilitation of existing academic buildings to help ensure students have safe, adequate facilities for learning. Student aid is increased to cover the growing cost of programs like 21st Century Scholars and Children of Disabled Veterans. The Senate budget plan also provides funding for several higher education line items, including the expansion of the IU Medical Center, Ball State’s Entrepreneurial College and Purdue agriculture and business assistance programs.

Public Health: The Senate budget proposal would help protect Hoosiers from losing access to critical state-offered health services while also trying to establish some control over the growing cost of Medicaid. A jointly funded federal-state program, Medicaid would receive an increase of $415 million over fiscal years 2012 and 2013 to cover reduced federal funding and additional costs due to enrollment growth. Other health funding includes $93 million for the CHOICE program (Community and Home Options to Instructional Care for the Elderly and Disabled) to provide in-home care to Indiana’s elderly and disabled. Our proposal would also appropriate $2.7 million per year to expand newborn screenings for heart defects.

Corrections & Public Safety: Our Senate budget includes $171 million each year for the Indiana State Police, while the Indiana Department of Natural Resources and Indiana Department of Environmental Management would receive $73 million in both 2012 and 2013 for conservation and environmental enforcement. Funding for the Indiana Department of Corrections would reflect savings from legislation updating requirements for electronic monitoring devices used to track convicted sex offenders.

Our budget bill is now before the full Senate for consideration. I pledge to continue working closely with Republicans and Democrats in the Senate and House of Representatives, so a final agreement can be reached by the April 29 legislative deadline.