Bargaining away the reserve

In his five-minute address last night, Mitch Daniels referred to other statesâ?? fiscal woes no fewer than four times.

Daniels, who is so fiscally conservative that one wonders whether he darns his own socks, is rightfully proud that his state
hasnâ??t fooled away a strong financial position. Few governors have had the backbone to impose such discipline on their legislatures.

Last night, though, Daniels said heâ??s willing to spend a quarter of the surplus as one of several compromises to get a budget
passed, leaving about $1 billion remaining.

How do you feel about spending down some of the surplus? The economy is nowhere near recovered, and some forecasters talk
of a possible double-dip recession or a recovery requiring not months but years.

Should Daniels bargain away even a quarter of the reserve at this point?

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