IBJNews

Daniels announces more cuts as state revenue falls again

Back to TopCommentsE-mailPrintBookmark and Share

Indiana Gov. Mitch Daniels on Friday morning announced a series of spending cuts and other steps designed to offset a continuing multimillion-dollar decline in state revenues.

Daniels said that Indiana tax collections for October were $46 million below forecast, and are $309 million behind for the first four months of the fiscal year.

The state ended the 2009 fiscal year in June with $1.3 billion in reserves. If the trend continues without spending cuts, he said, Indiana's reserves would be wiped out by next August.

“We have seen enough to know that new actions are necessary if we are going to protect Indiana taxpayers against the tax increases that are happening in most of the rest of America,” Daniels said in a prepared statement.

The governor ordered state agencies to cut spending by 10 percent—in addition to the 5 percent cut made in July—and reduced reimbursements to some Medicaid providers.

Among other reductions:

• The lieutenant governor, auditor, treasurer, secretary of state and superintendent of public instruction have committed to cutting their office budgets by 10 percent.

• State employees, who did not receive pay increases this year, also will forgo raises in 2010. Agencies also will offer employees the chance to take unpaid leave.

• Daniels will not accept his full salary in 2010. This year, he turned down a 13-percent raise.

The reductions are expected to save the state $300 million to $400 million over two years.

Daniels says those and other steps should offset the shortfall in revenue to date, but more action might be needed if tax collections continue to miss their target.

____

Read the October revenue report.

Listen to audio from Friday's news conference.

ADVERTISEMENT

  • No Raise for Governor?
    While I appreciate the fact that the Governor has declined his 13% RAISE this year, I have to wonder if this size of raise is standard for government officials and is that part of the reason we're in the mess we're in right now? After two consecutive years of no raises myself (NOT by choice) I would be thrilled if someday I could see our agency standard of 2.5% - 3%...which seems much more reasonable in these times!!

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT