Post by IDOCO on Feb 19, 2009 15:21:57 GMT -5
Daniels seeks to freeze state workers' pay
By Mary Beth Schneider
A Gov. Mitch Daniels has ordered a new round of budget cuts, much deeper than those already in place, as a new state revenue forecast showed the state taking in $935 million less than the state had counted on when putting together the current budget in 2007.
Among the steps: Freezing base pay for state employees, which means no increase as well for statewide officeholders, judges and legislators; 3 percent cuts for state agencies, on top of the 7 percent cuts already made; a 3 percent cuts in grants and subsidies; no out-of-state travel unless approved by the budget agency; and additional restrictions on capital spending and the filling of any vacant positions.
Because of steps already taken, the gap to be closed by the state is $763 million.
Daniels said the grim revenue forecast “is a big change and one that calls for big action in response. ... We will adjust spending to preserve a balanced budget in the State of Indiana.”
“These are only the first and hardly the last of the hard decisions that will need to be made,” he said.
Chris Ruhl, state budget director, acknowledged that it’s going to be “tough” for state agencies to make these cuts without harming services.
However, Daniels said no fundamental service will be impacted, including funding of K-12 public education and public safety. But cuts could come to higher education, though he gave no specifics at this time. And, he said, while the state will be looking for savings in Medicaid spending on health care for the poor, “not one person will lose coverage.”
In addition, he said that while state employees will not see an overall raise, some bonuses will continue to be awarded to reward exceptional performers.
While lawmakers are foregoing the cost-of-living adjustment they would have gotten if state employees and judges’ pay had gone up, they are still seeing a big pay raise. Because of a law passed in 2007, their base pay is jumping from $11,600 to $21,700 in 2009.
Daniels said that the trimmed — down 2009 budget will be the base for the 2010 and 2011 budgets which the legislature will craft in the session that runs from January to April. That means tough choices ahead on how to fund schools, welfare and other services.
Indianapolis - Gov. Mitch Daniels has ordered state agencies to cut an additional 3 percent from their budgets because of shrinking state revenues as the recession deepens.
His order came as a state revenue forecast released Thursday projects that Indiana will collect $935 million less during the current fiscal year than had been projected when the General Assembly approved the state's two-year budget in spring 2007.
The 3 percent cut in spending by state agencies will mean no pay increase for state employees in 2009, including Daniels, lawmakers, judges and other state officials.
The governor says scheduled state payments to K-12 schools will continue as budgeted, and there also will be no cuts in public safety. While no Medicaid recipients will lose their coverage totally, Daniels says there will be some Medicaid spending cuts.
By Mary Beth Schneider
A Gov. Mitch Daniels has ordered a new round of budget cuts, much deeper than those already in place, as a new state revenue forecast showed the state taking in $935 million less than the state had counted on when putting together the current budget in 2007.
Among the steps: Freezing base pay for state employees, which means no increase as well for statewide officeholders, judges and legislators; 3 percent cuts for state agencies, on top of the 7 percent cuts already made; a 3 percent cuts in grants and subsidies; no out-of-state travel unless approved by the budget agency; and additional restrictions on capital spending and the filling of any vacant positions.
Because of steps already taken, the gap to be closed by the state is $763 million.
Daniels said the grim revenue forecast “is a big change and one that calls for big action in response. ... We will adjust spending to preserve a balanced budget in the State of Indiana.”
“These are only the first and hardly the last of the hard decisions that will need to be made,” he said.
Chris Ruhl, state budget director, acknowledged that it’s going to be “tough” for state agencies to make these cuts without harming services.
However, Daniels said no fundamental service will be impacted, including funding of K-12 public education and public safety. But cuts could come to higher education, though he gave no specifics at this time. And, he said, while the state will be looking for savings in Medicaid spending on health care for the poor, “not one person will lose coverage.”
In addition, he said that while state employees will not see an overall raise, some bonuses will continue to be awarded to reward exceptional performers.
While lawmakers are foregoing the cost-of-living adjustment they would have gotten if state employees and judges’ pay had gone up, they are still seeing a big pay raise. Because of a law passed in 2007, their base pay is jumping from $11,600 to $21,700 in 2009.
Daniels said that the trimmed — down 2009 budget will be the base for the 2010 and 2011 budgets which the legislature will craft in the session that runs from January to April. That means tough choices ahead on how to fund schools, welfare and other services.
Indianapolis - Gov. Mitch Daniels has ordered state agencies to cut an additional 3 percent from their budgets because of shrinking state revenues as the recession deepens.
His order came as a state revenue forecast released Thursday projects that Indiana will collect $935 million less during the current fiscal year than had been projected when the General Assembly approved the state's two-year budget in spring 2007.
The 3 percent cut in spending by state agencies will mean no pay increase for state employees in 2009, including Daniels, lawmakers, judges and other state officials.
The governor says scheduled state payments to K-12 schools will continue as budgeted, and there also will be no cuts in public safety. While no Medicaid recipients will lose their coverage totally, Daniels says there will be some Medicaid spending cuts.