Post by No More Taxes on Aug 21, 2009 14:41:34 GMT -5
Daniels predicts tighter times despite surplus
Gov. Mitch Daniels warned this morning that there will be more difficult financial times ahead for state governments across the country.
In his remarks to the Capitolbeat Association of Capitol Reporters and Editors, who are meeting at the Hyatt Regency Downtown, Daniels touted Indiana's status as one of the few states with a budget surplus, but the governor forecasted even tighter fiscal times.
"Even if the revenue forecast on which we are operating are accurate, and they forecast some gradual increases from the fiscal year we just handled, Indiana will have fewer dollars to operate with in 2011 than in 2007," he said. "That says you can't have the same government you've had unless you plan to go broke, and we don't."
Daniels told the reporters that if their respective states don't want to raise significant tax increases, they'll have to make up for the lost revenue by cutting services to keep the state functioning properly.
When asked what he planned to do with Indiana's $1 billion surplus, the governor responded: "I'm still waiting to see any evidence that the revenue forecast will be right, and we're going to have to work very hard, I think, just to hold on to the billion. We may need all of the surplus simply to make it through that process even at our thriftiest."
Daniels used the forum to highlight the state's solid financial footing and improved business climate.
The governor also lamented the financial losses of newspapers and their dwindling resources.
"It troubles me to see the exigencies of the marketplace lead to thinner newspapers and thinner coverage and fewer people covering government at all levels," Daniels said. "It's such an essential duty, particularly in an era in which there is much information being narrowcast by new competitors.
"I don't think it's simply old fashioned to say that the print or traditional media providing aggressive, knowledgeable, daily scrutiny of the way the public's business is being done has never been so important."
Gov. Mitch Daniels warned this morning that there will be more difficult financial times ahead for state governments across the country.
In his remarks to the Capitolbeat Association of Capitol Reporters and Editors, who are meeting at the Hyatt Regency Downtown, Daniels touted Indiana's status as one of the few states with a budget surplus, but the governor forecasted even tighter fiscal times.
"Even if the revenue forecast on which we are operating are accurate, and they forecast some gradual increases from the fiscal year we just handled, Indiana will have fewer dollars to operate with in 2011 than in 2007," he said. "That says you can't have the same government you've had unless you plan to go broke, and we don't."
Daniels told the reporters that if their respective states don't want to raise significant tax increases, they'll have to make up for the lost revenue by cutting services to keep the state functioning properly.
When asked what he planned to do with Indiana's $1 billion surplus, the governor responded: "I'm still waiting to see any evidence that the revenue forecast will be right, and we're going to have to work very hard, I think, just to hold on to the billion. We may need all of the surplus simply to make it through that process even at our thriftiest."
Daniels used the forum to highlight the state's solid financial footing and improved business climate.
The governor also lamented the financial losses of newspapers and their dwindling resources.
"It troubles me to see the exigencies of the marketplace lead to thinner newspapers and thinner coverage and fewer people covering government at all levels," Daniels said. "It's such an essential duty, particularly in an era in which there is much information being narrowcast by new competitors.
"I don't think it's simply old fashioned to say that the print or traditional media providing aggressive, knowledgeable, daily scrutiny of the way the public's business is being done has never been so important."