House Majority Leader Comments on Latest Budget Effort

by Jonathan Weaver

House Majority Leader Dave Reed (R-Indiana) commented yesterday on lawmakers’ efforts to compromise and find resolution for the remainder of the 2015/2016 state budget.

The current year’s fiscal plan remains unfinished due to the Governor’s line-item vetoes of more than $6 billion for basic and higher education, as well as corrections and agriculture funding.

Majority Leader Reed indicated that the House plans to address many of the Governor’s vetoes and ensure that funding is available to keep schools open.

“We have an opportunity. This week, we are going to work with our colleagues - House, Senate, Republican, Democrat - to put a budget on the Governor’s desk that will balance for the current fiscal year, close out that last 13 percent; actually increase education funding for basic education by over $200 million, increase higher education by five percent, balance with a surplus of about $15 million, with no new tax increases along with it. We would encourage the Governor to sign that bill or at least let it become law,” Reed said.

“And then no school districts would be in danger of closing and we can get on to the process of negotiating the next year’s budget, hopefully in a much more timely fashion.”

Armstrong School District Business Manager Sam Kirk told school board directors Monday that, while Governor Tom Wolf did blue-lined basic education funding – which would grant Armstrong about $29 million -, the district has only received about $12.4 million so far.

That deficit could cause district leaders to look at other ways to make up that money as early as next month.

“In total, I’m projecting that we’re going to be down somewhere in the neighborhood of $18 million if something doesn’t happen now,” Kirk said. “That Basic Education line item someday has to be passed prior to June 30 – I’m not sure when that is, but if it doesn’t come in the next month, we’ll probably be coming in April to do some interim financing to make sure and keep the doors open.”

No reimbursement has also been received for construction debt payments.