The 2009 special session is officially over — finally — with a two-year state budget passed by the General Assembly.

After a lengthy process that seemingly left few happy based on the floor speeches in both chambers, enough of a compromise was reached to send lawmakers home and avert a government shutdown. The Senate voted 34-16 in favor, with the House approving it 62-37.

All but one of the Republican senators (Jean Leising of Oldenburg voted no) were joined by Democrats Lindel Hume of Princeton and Richard Young of Milltown. The House support came from all 48 Republicans and 14 Democrats.

Governor Daniels’ statement: "Like any compromise, this budget has its defects, but it meets the fundamental condition I laid down in January and every day since: to limit total spending enough to preserve our surplus and thereby protect taxpayers against the tax increases happening in virtually every other state."

Update: The governor proceeded to sign the legislation.

Mercifully, we’re nearing the end (hopefully).

Members of the House are currently taking turns on the floor voicing their opinions on the budget bill, which is expected to be voted on (relatively) soon.

Regarding the contents of this budget, Rep. Craig Fry (D-Mishawaka) says he’s embarrassed by it.  Rep. Vernon Smith (D-Gary) stated that Democrats were getting only “a teaspoon while Republicans walk away with a truckload.”  Still, not all Republicans were pleased.  Representative Mike Murphy (R-Indianapolis) voiced his concern that the budget didn’t do enough to help homegrown Hoosier companies, many of which he feared would be forced out of business.

Leading up to and including today, much of the wrangling centered on K-12 education – be it funding (districts vs. students), charter schools, the scholarship tax credit program or virtual schools. 

Indeed, Rep. Smith spent most of his floor time on this subject and denounced the education policies contained in the budget.  Like the vast majority of Democrats, Smith had wanted the K-12 dollars to continue to be awarded on a school district basis, while Republicans were adamant the money follow the students.  The problem with Smith’s argument: Large urban districts like Indianapolis and Gary continue to see declining enrollment.  To Rep. Smith, however, Gary is being “treated like a stepchild.”

Smith and many other D’s also still haven’t warmed to the idea of charter schools and see them – as well as the tax credits to allow for school choice – as a threat to traditional public schools. 

Meanwhile, Rep. Bob Behning (R-Indianapolis) pointed out that both the Gary and Indianapolis Public School (IPS) districts receive more funding per student than any other district in the state.  In fact, IPS gets nearly $2,300 more per student than the state average.

Later on, fiscal stalwart Rep. Jeff Espich (R-Uniondale) implored legislators to do the right thing and vote "yes" on the budget.  “We’ve all had our say; we’ve all had to compromise.  I think we’ve done the best we can do.  Anyone can find a reason to vote ‘no,’ but you can also find a reason to vote ‘yes’ … one reason being not having to raise taxes.”

Stay tuned for more …

Looking for ways to deal with greatly reduced tax collections, states are focusing on their unclaimed property statutes as a potential source of revenue. States are discovering that by changing their laws they can increase what escheats to the state coffers. Changes like expanding the definition of what constitutes "unclaimed property," shortening the period for owners to claim it and limiting recovery options result in more of the property going to the state (and less to the owners).

It is estimated that states collectively hold $33 billion in unclaimed property. Delaware expects to collect $380 million in 2009. So it is no wonder that struggling states are tempted to grab what they can in these disconcerting developments.