Schools don't keep pace with inflation uncer Pence budget

INDIANAPOLIS (WISH) — Tuesday, Governor Mike Pence presented state lawmakers with the budget plan that makes his promised 10% cut in the state income tax possible, but there's a price.

The price is increases in school spending that don't keep up with inflation. Governor Pence wants to phase in the tax cut with half of it taking effect this year and half of it taking effect next year.  The result is 1 percent increases in money to public schools as well as state universities in each year of the 2-year budget.  Inflation is 2.5 percent.

New state budget director Chris Atkins gave the numbers to lawmakers on the state budget committee, spelling out a proposal that would also lead to a $2.3 billion surplus at the end of the budget and an automatic taxpayer refund at the end of each budget year.

"Why cut income taxes by 10%?" asked Atkins.  "Most importantly, it would permanently lower taxes on most small business owners and employers and it would put $500 million directly back into our economy by letting Hoosiers keep more of their own money."

The reception was a chilly one.  "We'd like to be heroes and cut taxes," said state Sen. Luke Kenley, (R-Noblesville) "you also need to be prepared to take care of your priorities and you need to have enough money to do that."

The Pence budget now works it's way through the General Assembly in a process that won't conclude until the end of April.

Governor Pence will make a statewide sales pitch for it next Tuesday in his first State of the State address.

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Political Pulse

Did you like this article? Vote it up or down! And don't forget to add your comments below!

Like It
Don't Like It


We welcome your thoughtful comments. Be the first to participate in the discussion. All comments will display your username and avatar.


Add a Comment

Sign in or join now to post a comment. All comments will display your username and avatar.


Indiana (change)

Indiana politics enter a new era as MIke Pence prepares to take over as the next governor.
Offices & Officials

Contacting the White House and Congress

Click the links below to get in touch with your elected officials.