School Funding Once Again A Snag In Budget Negotiations

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(STATEHOUSE) - With one day left in the legislative session, budget negotiations are hung up on their usual sticking point: the school funding formula.

House Ways and Means Chairman William Crawford (D-Indianapolis) says House Democrats and Senate Republicans, the two majority caucuses, had an agreement in principle Monday, but says the GOP has belatedly raised concerns about having a fallback position if the federal government disallows the state's attempts to grab a share of stimulus money for schools.

The stimulus money is intended for states which would otherwise have to cut school funding. Governor Daniels has argued the state is being penalized for being in relatively good financial shape, and legislators have tried to devise a formula which creates a funding cut, then uses stimulus dollars to fill it in.

There are also disagreements over the formula itself. Senate Appropriations Chairman Luke Kenley (R-Noblesville) says the two sides are $100 million apart, with Republicans wanting to hold that money in reserve as a safeguard against both a further economic downturn and a veto from Gov. Daniels.

House Speaker Patrick Bauer (D-South Bend) has fired House Republicans' negotiator, Uniondale Rep. Jeff Espich, replacing him with Michigan City Democrat Scott Pelath.

That leaves Kenley as the only Republican on the four-person conference committee.

Crawford notes the removal of one or both minority caucus representatives is practically a formality in budget negotiations, since the spending plan essentially ends up being written by the majority caucuses.

He says with time running short, making the move now ensures legislators can move quickly if and when the majority caucuses reach a final agreement.

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