Indiana Gov. Mitch Daniels is dipping into the state's $1.2 billion surplus to give bonuses to most state workers.
Daniels said Friday that most state workers will get bonuses of $500, $750 or $1,000 based on their performance over the last year.
The bonuses will amount to between $15 million and $20 million.
State Auditor Tim Berry reported Thursday that the state ended the year with $1.2 billion in cash reserves. Berry called state workers "heroic" for their efforts to save money.
Daniels said Friday that the rest of the state's surplus is likely to be socked away rather than spent to replenish cuts to education and health care made over the last year. He cited a stagnant economy and lagging tax collections for his decision.