Indiana Governor Eric Holcomb’s administration releases its recommendations for the new state budget.
Administration officials made their presentation earlier Thursday to the state budget committee. State fiscal analysts project tax revenues will grow by about 2.5 percent each year for the new two-year budget starting in July.
Though, much of that money is expected to go toward allowing the state’s troubled department of child services to continue paying hundreds of new caseworkers added over the last few years.
It would also help with an expected jump in state costs for the Medicaid program for low-income families.
Holcomb and fellow Republicans want to protect the state’s $1.8 billion budget surplus, which Democrats suggest should be tapped to boost teacher pay.
Meanwhile, some lawmakers say Indiana school districts will keep falling behind financially under the proposed budget plan.
The proposal includes a 2 percent funding increase for schools for each of the next two years.
Some lawmakers say the proposal will not help boost teacher pay because it doesn’t get schools ahead of the inflation rate. Others say Holcomb’s proposal is a good start but more needs to be included.
The Republican dominated legislature has until late April to approve a new two-year state budget taking effect in July.