Dems propose 'state stimulus package'

INDIANAPOLIS (WISH) - Democrats who control the Indiana House of Representatives have accused the Daniels Administration of not doing enough to help unemployed workers or to stimulate the economy. Thursday, the Democrats proposed a plan to create new jobs.

Majority Democrats called the Daniels Administration on the carpet in a pair of legislative hearings Thursday. At the second one, they proposed what they call a state stimulus package.

Roads committee chairwoman Terri Austin put forward a nearly $2 billion proposal that would finance local road projects around the state, mostly by redirecting existing highway money. The proposal would include some money from the governor's Major Moves program.

House Speaker Pat Bauer (D) took the unusual step of testifying in favor of it.

"This bill is proactive. This bill shows respect for the legislative body. This bill says ‘put this money to work now’," said Bauer.

The second hearing followed a separate one on the state's unemployment insurance fund, a bankrupt account that has produced bi-partisan pledges to find solutions to a system where taxes on business are too low to support ballooning unemployment rolls. But the Democrats first brought in laid-off workers to complain about how the state administers unemployment.

"There are 2-3 hour waits in the lines every day," said laid-off worker Monica Reid.

"When I stayed on hold, I thought I was getting a representative -- and then I was disconnected," reported another worker.

The hearing had the feel of a political attack, and highway commissioner Karl Browning was in no mood for it. He told the roads committee that the stimulus proposal is not constructive.

"There's a better-than-even chance this would cost jobs, not create jobs," said Browning.

Browning also urged the committee to wait for federal stimulus money to arrive from Washington.

Thursday evening, the Democratically-controlled committee passed the so-called stimulus plan on a party-line vote. It lays the groundwork for what could be a session filled with partisan battles.