ANDERSON — Local delegates to the Indiana General Assembly were mixed in their support for Gov. Mitch Daniels’ budget proposal announced Monday.

Democrat Rep. Scott Reske and Sen. Tim Lanane both said the governor’s small increases to the public education budget likely still would equate to a decrease in school funding because it wouldn’t keep up with inflation.

“He doesn’t want to harm education coming out of the gate, but the flatline is actually a decrease in school spending because of inflation, so that has to be factored in,” Reske said.

Lanane said he expected many in the General Assembly to resist the flat education fund.

“When you consider the cost of living, (schools are) getting less funding,” he said. “I’d have to take a really hard look at that myself.”

Republican Rep. Jack Lutz said the state was in a good position compared to other states around the country, especially concerning education spending.

“We’re in a crucial time, and (Daniels is) cutting state spending with the exception of education and public safety,” Lutz said. “We should be thankful for where we are now for where our frugal past has been because a lot of states are cutting education spending anywhere from 5-16 percent, and we’re increasing it.”

Lutz also supported the governor’s plan to give half of all surplus funds the state should come across to education.

In a move to compromise with Democrats, Daniels announced that he would be willing to use up to a quarter of the state’s reserves in the budget.

“At least that’s a start,” Lanane said. “Those funds are there (for when) we’re in dire straits, and this seems to qualify for that.”

Lutz said the governor would have to be firm on the amount of reserves he allowed to be used in the budget.

Daniels did not mention Indianapolis’ Capital Improvement Board in his short speech Monday, but Reske said that issue likely would be addressed in the budget and should be an Indianapolis-based solution, rather than a statewide fix.

Daniels will call legislators back for a special session, likely by June 15, to pass a budget, as they failed to do so during the regular session that ended in April.

“I’m just grateful our budget was not passed this last session, because we would be looking at a billion-dollar tax increase,” Lutz said.