Indiana lawmakers start 2015 budget-writing session

Lawmakers returned to the Indiana Statehouse on Tuesday for the start of their four-month budget-writing session, with Republicans holding even larger supermajorities in both chambers after gaining seats in the November election.

The first major step on the new two-year state budget will come Thursday, when Republican Gov. Mike Pence's spending proposal will be presented to legislators.

Pence said Tuesday that it will be a "thrifty" budget proposal focused on education. He didn't give specifics, but said it would include removing the per-student limit on the state's private school voucher program and additional money to make charter schools "more widely available across the state."

He said the budget will have to be tight because tax revenues have been lower than expected over the past year. Last year, he ordered state agencies to cut spending.

"I want to make sure we have a tight budget going forward so that we don't have to be faced with those hard decisions," Pence said.

Democrats and others have criticized such cuts, saying they aren't necessary because of the state's $2 billion surplus.

Spending on K-12 education makes up nearly half of the current fiscal year's $15 billion state budget. State tax revenues are projected to grow 2.4 percent during the new budget's first year and 3.2 percent in the second year.

Republican House Speaker Brian Bosma said he believed the state can increase school funding over current levels despite the modest revenue growth forecast.

"I think it gives us the room to do so, but there are a lot of priorities out there," he said.

Republicans will control action throughout the General Assembly session that is scheduled to end in late April. The GOP gained two House seats in the November election to extend their control in the chamber to 71-29, while Senate Republicans added three seats to their ranks for a 40-10 majority.

House Minority Leader Scott Pelath, D-Michigan City, said during a speech Tuesday that a "frenzy" of corporate tax cuts pushed by Republicans in recent years hasn't helped average citizens as the state's average household income has declined over the past decade.

Pelath said more should be done to attract better paying jobs to the state and to help cities and towns that are struggling to remain vibrant.

"We have invested a great deal in board rooms and very little in the middle class," he said.

Republicans have pushed through cuts to corporate and individual income tax rates and elimination of the state inheritance tax in the past few years.

Bosma said he doesn't expect more such actions this year.

"It's probably the right time for the dust to settle on major tax cuts at this point," he said.