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Indiana Gov. Mitch Daniels has announced a series of spending cuts and other steps designed to offset a continuing multimillion dollar decline in state revenues.
Daniels said Friday that tax collections for October were $46 million below forecast, and are $310 million behind for the first four months of the fiscal year. He says if the trend continues without spending cuts, Indiana's reserves would be wiped out by next August.
He's ordered state agencies to cut spending by 10 percent, reduced reimbursements to some Medicaid providers. Agencies will also offer employees the chance to take unpaid leave.
Daniels says those and other steps should offset the shortfall in revenue to date, but more action might be needed if tax collections continue to miss their target.
************************** Thursday's story Indiana's 33,000 state employees have reason to be concerned about the future of their jobs. In West Lafayette on Thursday Governor Mitch Daniels could not say yes or no to the question of whether or not there would be job cuts.
Governor Daniels called the upcoming announcement both unwelcome and unpleasant.
"If anybody is displaced we will make sure they go to the front of the line for any vacancy that may come up," Daniels told reporters after a Chamber of Commerce luncheon at the University Plaza Hotel.
The budget troubles are being caused again by dismal monthly state income numbers. Revenue the governor says is down compared to what was projected and compared to October 2008.
State Employees Association Executive Director, David Larson, says more cuts will turn into misery and inefficiency.
"In some of these parole offices they're asking the secretaries to do the shake downs of inmates that come in," Larson told FOX 59 News.
Indiana is one of only 9 states in America that has a "rainy day fund." However, the state used $300 million of the $1.3 billion fund in the first quarter of this year.
Governor Daniels will announce the October revenue numbers and possible budget or state job cuts at a 10:30 AM Friday news conference.
Daniels said Friday that tax collections for October were $46 million below forecast, and are $310 million behind for the first four months of the fiscal year. He says if the trend continues without spending cuts, Indiana's reserves would be wiped out by next August.
He's ordered state agencies to cut spending by 10 percent, reduced reimbursements to some Medicaid providers. Agencies will also offer employees the chance to take unpaid leave.
Daniels says those and other steps should offset the shortfall in revenue to date, but more action might be needed if tax collections continue to miss their target.
************************** Thursday's story Indiana's 33,000 state employees have reason to be concerned about the future of their jobs. In West Lafayette on Thursday Governor Mitch Daniels could not say yes or no to the question of whether or not there would be job cuts.
Governor Daniels called the upcoming announcement both unwelcome and unpleasant.
"If anybody is displaced we will make sure they go to the front of the line for any vacancy that may come up," Daniels told reporters after a Chamber of Commerce luncheon at the University Plaza Hotel.
The budget troubles are being caused again by dismal monthly state income numbers. Revenue the governor says is down compared to what was projected and compared to October 2008.
State Employees Association Executive Director, David Larson, says more cuts will turn into misery and inefficiency.
"In some of these parole offices they're asking the secretaries to do the shake downs of inmates that come in," Larson told FOX 59 News.
Indiana is one of only 9 states in America that has a "rainy day fund." However, the state used $300 million of the $1.3 billion fund in the first quarter of this year.
Governor Daniels will announce the October revenue numbers and possible budget or state job cuts at a 10:30 AM Friday news conference.
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