Ind. Senate passes 2-year state budget

INDIANAPOLIS (WISH) - There will be no government shutdown in Indiana. The state legislature passed a new state budget Tuesday night and the governor has already signed it into law.

The 28-billion dollar, two year budget increases spending for public schools by one percent in the first year. It includes a bailout for the Capital Improvement Board and preserves a billion dollar surplus.

Lawmakers were little more than five hours from a midnight deadline when Senator Luke Kenley called for the final vote of the 2009 General Assembly.

"If we don't vote to pass this budget we are going to shut down this state, put people out of work," said Sen. Kenley.

"The roll call shows 34 ayes, 16 nays, the Conference Committee report has passed," Lt. Gov. Becky Skillman announced.

The lopsided result in the state Senate came after a debate lasting more than two hours. It topped a Special Session where most of the battle took place in the Indiana House, with Democrats fighting cuts for some public schools to the end.

"Don't forget us. We're losing money in our schools. We're losing money in our education," Rep. Trent Van Haaften (D) of Mount Vernon said.

"The people of this state value education," said Rep. Vernon Smith (D) of Gary.

But 14 House Democrats joined the 48 Republicans to pass the budget on a 62-37 count with two votes registered after the scoreboard closed.

Budget negotiator Jeff Espich got his wish, "Frankly, I think its time we all look at this as statesmen and as members of a community and a family."

Shortly after the state Senate vote the governor issued a statement saying, "The budget has defects but that it will protect taxpayers from tax increases."

Mitch Daniels will address the media Wednesday morning.