K-12 education in Indiana already has faced $300 million in reduced state funding this year as the state has cut spending
in the face of lower tax revenues.
Legislators postponed a $400 million tax hike to shore up Indiana’s bankrupt Unemployment Insurance Trust Fund, but state’s
troubled employers still face automatic payroll tax hike this year.
The Indiana General Assembly finally adjourned its 2010 legislative session early Saturday with deals including a one-year
delay on unemployment insurance tax increases and aid for schools reeling from state budget cuts.
Both parties reportedly agreed to tentative deals on the issues that threatened to push the legislative session all the way
to the brink, including a one-year delay for a planned increase in unemployment taxes.
The impasse between the two parties over a delay in an unemployment-tax increase is expected to drag the legislative session
into the weekend. "Nobody is talking right now," says one legislator.
Sticking points include a bill that would delay an unemployment insurance tax increase and provide tax breaks and incentives to create jobs.
Lawmakers are close to a compromise on a work-site guns bill, but remain farther apart on several other issues.
Indiana Gov. Mitch Daniels says lawmakers are doing a pretty good job as they head toward adjourning the legislative session
Tax collections for February fell $86 million below a revised December forecast. Revenue is down $166 million in the first
three months since that forecast.