State Faces $763 Million Shortfall
The nation’s economic slowdown is taking its toll on state coffers. Indiana Governor Mitch Daniels today announced a $763 million shortfall.
The state had projected to spend $13.3 billion but will only take in $12.5 billion.
The Governor says he is looking at 3-percent cuts across the board in state agencies on top of 7-percent cuts that were already made. There will be restrictions on hiring and travel and cutbacks in grants and subsidies.
Payments to schools, public safety, Medicaid and highway infrastructure will remain untouched.
Daniels says he will not raise taxes to balance the budget nor does he plan any layoffs.
He also says there will be no pay raises in 2009, however they will increase bonuses state employees get based on performance.
Depsite the bad financial news, Daniels says Indiana is still in better shape than most of the other states in the country.
