DALLAS – A two-year Indiana state budget is moving to the Senate after gaining approval in the House.
The $31 billion spending plan, which was passed on Monday in a 60-to-29 vote, would leave the state with a structural budget surplus of $115 million in 2018 and $252 million in 2019.
The proposal increases funding for local K-12 schools by 2.8%, supporters say, while providing modest funding increases for higher education and doubling state funding for a pre-K pilot program to help low-income, at-risk students.
"The conservative budget approved by House members ensures the state continues to operate within its means while funding vital services like education, public safety and workforce development," state Rep. Tim Brown, R-Crawfordsville in a statement. "Indiana's fiscal blueprint for the next two years must continue to protect our reserves and AAA credit rating, which saves the state millions of dollars and attracts investments. The House Republican budget in its current form stays true to Indiana's dedication to fiscal integrity."
Republicans control both houses of the Indiana legislature and the governor's office.
House Democrats condemned the GOP budget for not going far in helping fund programs and services that help millions of Hoosiers.
"I'm sure the Republicans will pat themselves on the back for their work in funding our schools, but once again, what they claim isn't matched by the reality of what's on paper," said State Rep. Gregory W. Porter, D-Indianapolis. "There's less than a 2 percent increase in state support over the biennium, many urban and rural schools are losing funding, and charter schools and vouchers just keep getting a larger slice of the pie."
Indiana closed out fiscal 2016 with a structural surplus of $50.6 million, $545 million in its rainy day fund, and a total of $2.24 billion in various state reserve accounts. Revenue in the fiscal year that ended June 30 finished $111.3 million below a revised forecast and $78.5 million below revenue collected in fiscal 2015.
The state holds triple-A ratings from the three largest rating agencies. S&P Global Credit Ratings reaffirmed Indiana's AAA credit rating in April and Fitch Ratings reaffirmed the state's AAA credit rating in June.
