The State Senate passed what some lawmakers called sweeping reform to solve the state’s unemployment insurance problem.  The bill passed 46-3.  It increases taxes on employers but over a longer period of time than earlier versions.  It also provides more administrative tools for employers to challenge workers who file for unemployment.  The House still has to concur with the Senate.

I’m back from the Club, only one martini though. The Democrats just got out of caucus.   I hear everything is still up in the air so the next posts you get from me will be either the bills that passed or an analysis of what happened.  I will say this, both the Speaker and Legislative Black Caucus  have news conferences scheduled for tomorrow.  They both call them “post session” media availabilities.  We’ll see.  Stay tuned. 

The House is on a dinner break.  The Senate is still in caucus.  I’m going to the Columbia Club for a martini.  Back at 7ish.

The House is still working through bills.  The Senate is still out.  I’m going to go see if I can find a copy of the new budget.

There are 6 hours and 15 minutes left until adjournment.

The House is in session.  They are going through committee reports.  I am still waiting to get my hand on a copy of the budget lawmakers will work with tonight.

I do feel a sense that they might actually get out of here on time, mainly because they don’t have a choice and either way the Governor wins this round.

If they don’t pass and a special session is needed, Daniels wins because he can lambast them for not doing their job.  If they pass a budget, it will be his budget and he can declare victory.

Not a bad place to be.

There are 7 1/2 hours left before lawmakers are scheduled to adjourn.

Indiana State Senators are waiting on a copy of the budget so they can vote. The House is still not in session

Meanwhile, a new version of the unemployment insurance bill has been unveiled.  The bill still raises taxes on employers, but the increases are phased in over a longer period.  It also gives employers more means to challenge fraudulent claims but it does not cut back the benefits on workers. The bill would raise more than $600 million in the first year.  That number is virtually split between tax increases and administrative savings.

Lawmakers have a little more than 8 1/2 hours before their scheduled adjournment.

I spoke with House Ways & Means Chairman Bill Crawford this afternoon and got his reaction to the anticipated additional $200 million budget shortfall.

Crawford says he doesn’t trust those numbers and thinks someone has been “cooking the books.”  He says two weeks ago the projected shortfall was about $800 million and he says he doesn’t see how that number could grow by $200 million in just two weeks.

Crawford says right now it’s either pass the Governor’s budget or go to a special session, because lawmakers appear to be giving in to the Governor’s threat to veto any proposal they put forward.

There are 9 hours left before lawmakers are scheduled to adjourn.

I’m not totally sure what impact this little bit of news will have on today’s events at the Statehouse, but it can’t be a good one.

I just got confirmed from the Governor’s office that Indiana’s actual revenue intake will fall in the ballpark of $200 million below the last forecast.  The last revenue forecast had the state taking $830 million less over the next two years.  That number could now reach $1 billion with the latest information.

This would explain, in part, why the Governor has been threatening to veto the budget if lawmakers don’t cut an additional $100 million in spending.

There’s no reaction yet from legislators, but you know this can’t be good.

There are 10 hours left before lawmakers are scheduled to adjourn.

With 12 hours left to go, here’s what I know so far.

Governor Mitch Daniels is saying he will veto the current budget unless lawmakers can find $100 million in cuts.  House Speaker Pat Bauer says the Governor is moving the target because they are meeting his goal of having more than $1 billion in the rainy day fund.

Senator Luke Kenley is delivering his plan to solve the CIB funding issue.  He says it includes a tax on tickets, car rental and hotels.  It also gives the CIB the sales and income tax revenue from the new Marriott hotel, if the city can find $8 million in taxes from other sources. No reaction yet from the city.

Superintendent of Public Instruction Tony Bennett is warning lawmakers that they jeopardize federal stimulus dollars for education by putting a moratorium on charter schools as currently exists in the budget.  Bennett says Indiana could lose up to $270 million in federal funds.

 Overall, lawmakers are not looking optimistic about getting out of here by midnight.

Stay tuned.

The House was supposed to convene nearly an hour ago, but nothing has happened and lawmakers are still milling around on the floor.  Senate Republicans are still in caucus.

I am hearing however that the Black Legislative Caucus may not sign onto the budget if the Capital Improvement Board and some Gary economic development matters are not addressed to their satisfaction.

Stay tuned.