By Eric Berman
11/6/2009
Democrats are closing ranks behind Republican Governor Mitch Daniels' spending cuts to keep the state out of the red.
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House Speaker Patrick Bauer (D-South Bend) and Senate Minority Leader Vi Simpson (D-Bloomington) say the governor is doing the right thing in tightening the screws on spending in the face of a 13th straight month of lower-than-expected tax collections. Bauer says he's already told House Democrats any bill next year which would cost the state money won't get a hearing.
And Bauer says Daniels is right to warn schools they could be next to face the knife.
"We would hope that he refrains from cutting education. It was cut pretty much to the bone in the budget that was passed," Bauer says. "But we do understand there have to be some other restraints."
During this year's legislative session, Bauer had pushed Daniels to spend the state's $1.3-billion surplus on public-works programs to create jobs, and to avoid deep cuts to many school districts, although total school spending increased slightly. Many House Democrats went further, angrily accusing the governor of strangling schools in order to hoard money in reserve.
Bauer now says cratering tax collections have proven Daniels was right to insist on a bigger reserve, though he points out it's only President Obama's stimulus package that made it possible. He's echoing Daniels' declaration the state shouldn't touch the billion dollars remaining.
Bauer and Simpson are still calling for a state stimulus package, but Bauer says it should be paid for with federal highway dollars, fast-tracked to get more Hoosiers working faster.
Bauer says he does want more specifics on plans to slash payments to Medicaid contractors. Daniels says the Family and Social Services Administration will release details on Monday.
As a separate branch of government, the legislature is not bound by Daniels' order to state agencies to slash spending 10% and freeze salaries. But Bauer says the House will look at circulating all bills electronically instead of printing copies for all 100 representatives, a step he says could save thousands of dollars.
And Senate President Pro Tem David Long (R-Fort Wayne) says the Senate will implement the pay freeze and cut spending by five percent.
» Governor Orders Budget Cuts for State Agencies (11-6-09)
» Indiana Schools Warned of Funding Cuts (11-5-09)
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