INDIANAPOLIS —
Indiana Gov. Mike Pence is doubling down on his pledge to cut the state’s income tax, despite a call by House Republicans to spend more of the state’s $2 billion surplus on cash-strapped schools, crumbling infrastructure and services for the needy.
On Friday, the Republican governor issued a statement saying he was “very disappointed” with a House Republican budget proposal that excludes his plan to lower the individual income tax from 3.4 percent to 3.06 percent, in favor of spending more dollars on education, road repairs, child protection and worker training.
“Despite having the largest budget surplus in history, this House budget increases spending without giving hardworking Hoosiers one cent of new tax relief,” Pence said.
The budget proposal that prompted Pence’s complaint was unveiled earlier in the day by the chief budget maker in the House: Republican Ways and Means Chairman Tim Brown of Crawfordsville, who said the plan “honors the commitments” made by the General Assembly to restore funding for critical services that had been cut in the past.
The $30 billion, two-year budget plan includes about $1 billion more in spending than Pence’s proposed budget. The GOP House plan would boost spending on K-12 schools by $344 million — about $63 million more per year for schools than what Pence has proposed — to bring it to an all-time high of $6.7 billion.
It adds $500 million for infrastructure by directing more gas-tax revenues to local governments for road and bridge repair. It also adds $40 million a year in new funding for the Department of Child Services, and $33 million over two years for workforce development. It also puts $300 million back into an education reserve fund that was raided after the 2008 recession.
“We’ve talked about strategic restoration,” Brown told reporters during a briefing on the budget plan, in which he emphasized the need to spend more dollars on education, including an added $108 million for higher education. “We want to invest in education because we know an educated society is very important to move forward for jobs.”
But nowhere in the House GOP plan is Pence’s tax cut, which he’s repeatedly called his number one priority since taking office in mid-January. The cut would save about $100 for the average Hoosier, but would drain state revenues by $500 million a year.
That hit to the state coffers is why Pence’s proposal has met with such strong and open resistance from GOP leaders in the House and Senate. They saw what it was like when state revenues plunged during the recession and the dollars to schools, local communities and services for the needy were slashed. Pence’s cut, if granted, would come on the heels of two tax cuts — a reduction in the corporate tax rate and phase-out of the inheritance tax — already passed by the General Assembly last year.
During the budget briefing with reporters, Brown said it was still early in the budget negotiating process and that he and others remained “open” to considering Pence’s tax cut proposal. But he also said giving Pence his tax cut would mean the spending increases for schools, roads and other services would have to be “re-prioritized.”
House Speaker Brian Bosma cast doubt on that scenario Thursday when he told reporters that the House GOP budget plan directs more money back into schools and other places where it’s needed.
“You’ll see a restoration of funding for some critical programs that we all know first-hand are helping Hoosiers in need,” Bosma said.
In an unexpected twist Friday, House Minority Leader Scott Pelath of Michigan City called Pence’s proposed tax cut “a bold idea” and said he was certain there are some Democrats who would vote for it — despite their repeated complaints about past funding cuts for schools and other services.
Pelath said Democrats will try to force an up-or-down vote on the Pence tax cut proposal — a potentially embarrassing move since it would force individual GOP legislators to cast a public vote on whether they support the tax cut or not. Pelath denied it was a partisan political move to embarrass Republicans.
“We have not heard a lot of bold ideas either from the governor’s office or from the two supermajorities,” Pelath said. “This is the one bold idea that’s been brought forth. I think to ignore it is a mistake.”
Maureen Hayden can be reached at maureen.hayden@indianamediagroup.com
Breaking News
Related Photos
-
Indiana Gov. Mike Pence delivers the State of the State address to a joint session of the Legislature last month as Speaker of the House Brian C. Bosma, R-Indianapolis, looks on. THE ASSOCIATED PRESS
Gov. Pence opposes House GOP's budget plan
- Breaking News
-
-
Concert series to benefit ministry
It is summer and time for outdoor music. It is also the beginning of First Fridays — a concert series hosted by the local community ministry, Reason 4 Hope.
-
Planners like changes to CVS parking lot
Access to the CVS at 410 S. Main St. in Goshen could soon be easier for those with disabilities following a ruling by the Goshen Plan Commission Tuesday afternoon.
During their meeting Tuesday, Goshen Plan Commission members gave their blessing to a request by CVS Pharmacy and State Permits Inc. for a major change to the CVS Planned Unit Development that seeks to reconfigure the north portion of the parking lot to increase the overall Americans with Disabilities Act accessibility of the site. The final site plan for the PUD was also approved by the commission Tuesday, and the request will now be forwarded on to the Goshen City Council with a favorable recommendation. -
Council won’t fund school sidewalks
GOSHEN — Goshen City Council members voted along party lines Tuesday to defeat a proposal by Goshen Community Schools for a 50-50 cost split between the city and the school corporation to pay for a $125,000 sidewalk expansion project.
-
Millersburg man airlifted from crash scene this morning
A 26-year-old Millersburg man was airlifted to Memorial Hospital of South Bend after he was struck by a car early this morning.
-
Council declines to fund sidewalks near schools
The Goshen City Council voted 4-3 along party lines Tuesday night to defeat a proposal to spend $62,500 on constructing sidewalks near schools in the city.
-
'Experience Michiana' segments to be taped in Goshen
The crew with WNIT program “Experience Michiana” is set to tape segments in Goshen this week. The segments will be broadcast June 27 and 28.
-
State officials warn people to be alert at fairs, festivals
The Indiana Department of Homeland Security and state police are reminding state residents to be alert for safety concerns when attending county fairs and other local festivals.
-
Goshen officials donate former Hawks Building to LaCasa
An agreement between Goshen city government and LaCasa Inc. allowing for the donation of the former Hawks Building to the local non-profit was approved Monday.
-
How to monitor a Facebook Page while out of the office
With the popularity of social media soaring by the day, it is important for online marketers to keep their Facebook page updated regularly, and monitor it daily to answer comments and questions that fans post.
-
GROUNDS FOR INSANITY: In need of a support group — or several
It’s an idea whose time has come. Actually, the country’s been ripe for it since the oil crisis of the Carter administration, but I was young then and hadn’t twigged to it yet.
- More Breaking News Headlines
-
James Gandolfini Dies at Age 51
Fmr. TWA Flight 800 Investigators Want New Probe
Raw: Heat, Spurs Back on Court Ahead of Game 7
Dolce and Gabbana Convicted of Tax Evasion
Paris, Prince Depositions Used in Jackson Trial
Coiffed Cattle Get Their Close-up
In Berlin, Obama Channels Cold War Activism
Police at Patriots Tight End's Home for 2nd Day
Fed Suggests Bond Purchases Could Slow
AP: DOJ Broke Own Rules Seizing Phone Records
Raw: Baby White Rhino Debuts at Australian Zoo
Time Lapse: Rebuilding Bridge Post-collapse
Ohio Woman Accuses 3 of Holding Her Captive
Hunt for Ex-Teamster Boss Hoffa's Remains Ends
