My Man Mitch, not!
Daniels lays out plan to address budget shortfall
Updated: Dec 04, 2009 5:09 PM EST
Rader/Eyewitness NewsIndianapolis - Governor Mitch Daniels announced steps Friday to deal with the state's budget shortfall.
Indiana's tax revenue for November was $144 million below projections. That marks the 14th consecutive month where tax revenues for the state were well below projections.
The steps proposed by the governor will save the state at least $159 million over the next 18 months. He says he is trying to address the shortfalls as they occur.
Since the fiscal year began July 1, the general fund revenues are $475 million below the May forecast. The state will get a new revenue forecast next week.
"If the erosion continues, then more action will be necessary and, little as we like it, we will take them. We are not going to be California, we are not going to be Michigan. We are not going to be one of those 40 or some states raising taxes on people who are finding it difficult to make it right now," the governor said.
Daniels is proposing a $150 million cut of general fund support for higher education. Purdue University, for one, announced that it supports the governor's move. Indiana University is asking that these cuts be fairly allocated among all public institutions in the state.
So far, K-12 education, which is a top priority, has not been cut. In fact, it is still in line for a 1.3% increase.
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