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Senate Passes Balanced Budget Amendment

Noah Coffey
/
https://www.flickr.com/photos/noahwesley/

The Indiana Senate Tuesday passed a resolution to add a balanced budget amendment to the state’s constitution.  Governor Mike Pence requested the measure in his State of the State address earlier this year.  But lawmakers are divided over the amendment’s necessity.

The proposed amendment would bar the General Assembly from spending any more than the state takes in.  Under that prohibition, state revenue couldn’t include loans, bonds and trust funds unless authorized by a two-thirds vote of both chambers. But Portage Democratic Senator Karen Tallian says records since 1979 show that Indiana hasn’t gone into what’s called deficit financing once.

“This is just another example of another constitutional amendment that we just don’t need,” says Tallian. 

Buck Creek Republican Senator Brandt Hershman says the amendment is necessary because Indiana’s constitution doesn’t prohibit using borrowed dollars to meet budget requirements:

“Just because we’ve done it well in recent years is no guarantee that it will be done well in the future,” says Hershman.

If the amendment is approved by the House this session, it would be need to be passed again in 2017 or 2018 before heading to the ballot for the voters’ approval.

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