Indiana legislators warning budget picture could get tighter

Indiana Statehouse

The Indiana Senate has advanced a state budget plan with slightly more money for public schools amid warnings that state tax revenue could be tighter than expected.

Senators voted 40-8 Tuesday in favor of the Republican-written budget proposal boosting base school funding by 2.7% next school year and 2.2% for the following year.

Senate Republicans rejected proposals from Democrats for additional education money by cutting private school voucher growth and increasing cigarette taxes.

A teacher rally is planned Tuesday afternoon at the Statehouse to call for better school funding.

Republican legislative leaders are warning that cuts might be needed in the $34.6 billion, two-year budget after a new tax revenue forecast is released Wednesday. Leaders say they expect revenue growth will be less than what economists projected in December.

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