The Senate has voted 43-4 to add a balanced-budget requirement to the constitution. If the House adds its approval, you get the final say in a referendum next November.
The constitution already says the state can’t go into debt, but Buck Creek Senator Brandt Hershman says an exception for “casual” shortfalls makes that provision too weak. The amendment would ban the state from passing a budget which spends more than the state has on hand or expects to collect.
Hershman says the state could still dip into its surplus, since that’s money that’s already been collected. But he boasts his amendment avoids loopholes which have plagued amendments in other states. He says chronically debt-ridden Illinois has gotten around its amendment by borrowing money to pay its bills, then declaring the borrowed money as income.
The legislature could override the requirement on a two-thirds vote.
Senate Minority Leader Tim Lanane (D-Anderson) and Senator Frank Mrvan (D-Hammond) joined all Republicans in approving the amendment.
(story from Network Indiana)
