"We have reached the most critical point of the legislative session," Pelath said. "The Indiana Constitution requires us to pass a budget, and mathematics requires us to erase the red ink in our unemployment trust fund. At present, the Democratic House and the Republican Senate have many differences on how to resolve these issues, but the painstaking movement toward compromise must begin."

The first matter at hand is passing a new state budget amidst a recession and rapidly plummeting revenues. In February, the House of Representatives passed one-year appropriation bills that reduced funding for most state agencies, but also tapped the state's reserve funds to create and preserve jobs while providing modest state support for schools.

The Senate majority balked at most of the House's job creation proposals, while taking the worrisome step of proposing a budget that cuts state support for education, replacing it with temporary, short-term federal stimulus dollars.

"With the state's unemployment rate nearing 10 percent, the House majority has a simple priority: put people to work," said Pelath. "Of equal importance is the need to shield education and job preparation from the ill effects of this national recession. As we seek areas of agreement with the Senate, these two values will remain foremost in our minds."

While crafting a budget agreement is a challenge even under the best of circumstances, Pelath said that building consensus on a plan to replenish Indiana's fund that pays unemployment benefits may be an equally difficult chore.

In all 50 states, businesses pay assessments into a fund used to finance small weekly payments to workers who lose their jobs through no fault of their own. Unfortunately, with high jobless rates and increasingly modest contributions from Indiana businesses, our state has become one of many that has found its unemployment insurance account bare.

For a number of months, Indiana has been forced to borrow money from the federal government in order to pay temporary benefits to laid-off workers. Several weeks ago, the Indiana Senate put forth a plan that included cuts in short-term assistance to people who were downsized and looking for a new job.

"In times like these, unemployment insurance protects people from losing their homes and emptying their cupboards," Pelath said. "It is not welfare. It is an insurance program that gives people a few months of breathing space until they find a new job. With so many plants closing, most House members believe it is wrong to cut benefits amidst the worst economic conditions in decades. As we tackle this tough problem, people out looking for work should come first."

Although many House and Senate leaders often have philosophical differences, Pelath has high personal regard for the Senate Republican team, which includes State Sens. Luke Kenley (R-Noblesville) and Dennis Kruse (R-Auburn).

"They are talented, honest people," said Pelath. "We just look at things a little differently. While we all refuse to compromise on matters of deep conviction, there is a shared willingness to look everywhere for areas of agreement."