The funding would instead go to courses in areas that are typically higher paying, such as nursing, biomedical science and welding. But critics say eliminating popular programs would narrow students’ options.
The $36.3 billion two-year budget proposed by the House GOP on Thursday would make a handful of one-time investments in small businesses, regional projects, student learning loss, health initiatives, broadband and police training.
The $35.2 billion budget, which Office of Management Director Cris Johnston and Budget Director Zac Jackson presented to the State Budget Committee on Wednesday morning, also restores the state’s reserve balance to $2.3 billion each year.
According to a revenue forecast presented to the State Budget Committee on Wednesday morning, tax receipts for the state’s general fund—essentially its main checking account—will total $34.95 billion for the next two-year budget, which will start in July.
Leaders promise K-12 education will be the top priority, but they also acknowledge that every line item in the spending plan is at risk of cuts.
Indiana Office of Management and Budget Director Cris Johnston told the State Budget Committee on Tuesday that the state has been waiting for clearer guidance from the federal government on how the dollars can be spent.
Indiana’s monthly revenue report, released Friday, shows that the state is still falling short of the funds that were expected when the forecast was made last December.
Lower than expected revenues created a budget deficit of nearly $900 million, but the state still managed to end the year in the black by cutting costs in some areas, tapping into reserves and receiving additional federal dollars for Medicaid.
Wednesday’s report by Moody’s Analytics warns that doing nothing to address the economic perils of state cutbacks could cost millions of jobs. But it also says that significantly less federal aid is needed than what’s being called for by House Democrats.
Tax revenues for fiscal year 2020 were already off by $1.2 billion by the end of May, an amount that is expected to grow to $1.7 billion to $1.8 billion before the fiscal year ends June 30.
Indiana Gov. Eric Holcomb’s administration continues to make budget cuts as the state prepares for revenue collections possibly being $2 billion lower than expected by the end of the fiscal year.
Gov. Eric Holcomb said the budget agency is estimating that Indiana could take in $3 billion less than expected during the last two months of fiscal year 2020—which ends June 30—and fiscal year 2021.
Gov. Eric Holcomb announced Friday during his press briefing that cities, towns and counties will be eligible for a certain portion of the $300 million based on population.
State officials said Friday that they expect to receive $2.4 billion in federal rescue funds that will help make up for budget shortfalls.
The Coronavirus Aid, Relief, and Economic Security Act, which President Donald Trump signed into law on March 27, provided $2 trillion in economic aid for business, hospitals and governments struggling with the impact of the pandemic.
Cris Johnston, director of the Office of Management and Budget, said agencies have been told to look for places where they can eliminate spending. But he said there are no plans to cut funding for schools, even though it’s the state’s largest expenditure.
The vote came Monday after several failed attempts by House Democrats to amend the legislation and use the money for teacher pay bonuses and other “human capital” proposals, such as pre-kindergarten education and school safety.
Like Gov. Eric Holcomb, Indiana Senate and House Republicans are focused on health care, education and spending one-time dollars on capital projects this year. But lawmakers have slightly different views on how those surplus dollars should be spent.
The state is expecting an additional $531 million in revenue over the next biennium, according to a forecast released Friday. The additional dollars would bring reserves up to $2.4 billion in 2020 and $2.6 billion in 2021.
Indiana ended the fiscal year with record-high reserves, it reported Thursday, prompting Gov. Eric Holcomb to propose spending nearly $300 million on five one-time projects.
