02/09/2009 - Indiana Senate Democrats detail stimulus plan (Associated Press)

Indiana Senate Democrats detail stimulus plan

By MIKE SMITH
AP Political Writer

INDIANAPOLIS (AP) -- A plan by Indiana Democrats would spend about $2 billion in state money and an expected influx of federal dollars on a variety of capital projects and programs in hopes of creating jobs.

Senate Democrats, outnumbered by Republicans 33-17, said Monday that their plan was meant to turn the tide on an Indiana economy they said was spiraling downward.

Indiana's unemployed rate soared to 8.2 percent in December, with about 260,000 residents out of work. And new numbers released last week show the state's revenue collections have fallen $175 million short of expectations in just two months since a revised forecast came out.

"State leaders need to move beyond advocating broad positions and start discussing specific, bold proposals to get Hoosiers back to work and to turn Indiana's economy quickly around," said Senate Minority Leader Vi Simpson, D-Bloomington.

She said the plan was only a road map, since the U.S. Senate had yet to approve its version of a federal stimulus bill. The Senate was expected to pass an $827 billion economic recovery act on Tuesday, but it would then have to be reconciled with the House version, which totals $820 billion in spending and tax cuts.

President Barack Obama was in Elkhart in northern Indiana on Monday to urge public support for Congress passing a federal stimulus plan quickly. The unemployment rate in the Elkhart area hit 15.3 percent in December - a stark contrast to 4.7 percent a year earlier. Hundreds have lost their jobs at RV makers.

The Indiana Senate Democrat plan would include about $90 million in spending from Indiana's main checking account, with the rest coming from a federal stimulus package - for now the U.S. House version. Indiana stands to get about $5 billion from that bill.

The state Senate Democrat proposal would direct the Indiana Department of Transportation to put numerous state and local road projects on a fast track and spend about $750 million in federal dollars on them. The plan would steer $411 million to state road projects and $335 million to local ones.

About $168 million in federal money would be used to expedite funding for drinking water and wastewater projects, and the state could get an estimated $76 million in grants for rural water projects.

Other spending would include:

- $228 million so university capital projects that have been postponed could proceed.

- $132 million for university restoration and renovation.

- $248 million to modernize public schools through new equipment and updated classrooms and labs.

- $70 million to encourage development of mass transit systems.