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Indiana Gov. Mitch Daniels is proposing a new state budget that would cut higher education spending by 3 percent and eliminate optional Medicaid services for adults such as hearing aids, dental and podiatry care.
The budget would hold funding flat for public schools and most other entities, and does not include any tax increases. Funding cuts made in the current budget cycle would not be restored.
The Daniels administration says the state must hold spending at current levels as it waits for revenues to improve.
Some lawmakers on the State Budget Committee say they're unhappy with the cuts to Medicaid and higher education. The committee has voted to send the proposal to the Indiana House for consideration but said changes could be made to avoid those cuts.
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