Indiana Proposes Cutting Money from Recycling Budget

The state of Indiana’s State Board of Finance voted to pull several million dollars from recycling-related projects to help fund education in the state. However, Governor Frank O’Bannon, said the money would go only toward balancing the state budget.

For the second time in two weeks the State Board of Finance, consisting of O'Bannon, a Democrat, and Auditor of State Connie Nass and Treasurer of State Tim Berry, both Republicans, voted to move money to the state's General Fund.

Last week, the panel unanimously approved moving $432 million in state cash reserves to shore up the budget, estimated to be $1.5 billion in the red. The bulk of that money -- $250 million -- will come from the Build Indiana Fund, which includes gambling and lottery revenue normally used by lawmakers to pay for pet projects in their legislative districts.

This week, the officials voted 2-1 to move $9 million in additional money from the Environmental Management Special Fund, Recycling Promotion and Assistance Fund in the Department of Commerce, and Financial Responsibility Compliance Verification Fund in the Bureau of Motor Vehicles. A spokesman for the Department of Commerce’s Recycling Department refused to comment until the special meeting is held. The special hearing is to be held next month.

What will be transferred into the state's General Fund, according to the state auditor:

•$3 million ($3.5 million last week) from the Environmental Management Special Fund.

•$1 million ($8 million last week) from the Recycling Promotion and Assistance Fund in the Department of Commerce.

•$5 million ($11.25 million last week) from the Financial Responsibility Compliance Verification Fund in the Bureau of Motor Vehicles. Journal and Courier (Indiana)