Post by Greener on Apr 8, 2009 6:58:57 GMT -5
Daniels: More Cuts To Come After Drop In Tax Revenue
Construction, Pay Raises Already Cut
INDIANAPOLIS -- The ongoing drop in state tax revenues will lead to even more budget cuts, Gov. Mitch Daniels said Tuesday.
The governor's budget aides have already cut hundreds of millions in spending over the last several months. But with Monday's news that tax collections are down more than $400 million compared to last year, the cuts have become more urgent, 6News' Norman Cox reported.
"It was clear to anyone with common sense that even December's numbers would not hold up. And so it means we have to work together to protect taxpayers," Daniels said.
Some of the cuts instituted already include bigger projects, like stopping construction at state parks, prisons, hospitals and state police posts, saving more than $220 million, and not handing out new money to construct or repair buildings on state college campuses, saving more than $50 million.
State workers won't receive a pay raise, saving $20 million, and recycling assistance to local communities is being cut, saving $11 million.
Other smaller cuts include not replacing the carpeting at the State Government Center or the light bulbs in the building's auditorium.
The Indiana Budget Agency reports that the cuts have saved a total of $767 million, or a little more than the difference between what came in and what the last Legislature thought it would have when it put together the current budget.
But state Budget Director Chris Ruhl said Tuesday that the cuts can't stop yet.
"So we certainly feel like we've made some cuts over the past six to nine months that have helped us. But given the way revenues are declining, we're going to need to make some more," he said.
One possible future area for cuts would be government advertising, which includes things like sponsorships of events by government agencies.
Construction, Pay Raises Already Cut
INDIANAPOLIS -- The ongoing drop in state tax revenues will lead to even more budget cuts, Gov. Mitch Daniels said Tuesday.
The governor's budget aides have already cut hundreds of millions in spending over the last several months. But with Monday's news that tax collections are down more than $400 million compared to last year, the cuts have become more urgent, 6News' Norman Cox reported.
"It was clear to anyone with common sense that even December's numbers would not hold up. And so it means we have to work together to protect taxpayers," Daniels said.
Some of the cuts instituted already include bigger projects, like stopping construction at state parks, prisons, hospitals and state police posts, saving more than $220 million, and not handing out new money to construct or repair buildings on state college campuses, saving more than $50 million.
State workers won't receive a pay raise, saving $20 million, and recycling assistance to local communities is being cut, saving $11 million.
Other smaller cuts include not replacing the carpeting at the State Government Center or the light bulbs in the building's auditorium.
The Indiana Budget Agency reports that the cuts have saved a total of $767 million, or a little more than the difference between what came in and what the last Legislature thought it would have when it put together the current budget.
But state Budget Director Chris Ruhl said Tuesday that the cuts can't stop yet.
"So we certainly feel like we've made some cuts over the past six to nine months that have helped us. But given the way revenues are declining, we're going to need to make some more," he said.
One possible future area for cuts would be government advertising, which includes things like sponsorships of events by government agencies.