Budget Battle, Part I
Indiana Governor Mitch Daniels says the budget will be more than $1 billion short based on new actual budget numbers. Daniels told reporters the state took in $255 million less than projected. He did not specify which budget cuts to make, but said he still wanted to give lawmakers flexibility to address the shortfall. Democrats question the shortfall, saying there are still outstanding taxes that need to be collected and that could reduce the shortfall. You can hear the Governor’s comments below.
May 4th, 2009 at 3:14 pm
The Governor appears to be the only adult in the budget discussion.
May 4th, 2009 at 3:54 pm
Question. If the budget, economy, finances and job market are that bad in Indiana, Then why aren’t we using the “rainy day fund”. Can someone explain what this fund is for?
May 4th, 2009 at 4:24 pm
The Democrats seem to think it is raining all the time.
Yes, Indiana’s economy has taken a significant hit since at least September, however, this may be a slight drizzle compared to the tornado storm coming our way because of the Chrysler bankruptcy and GM restructuring.
Indiana’s economy is largely dependant on manufacturing and its transportation industry jobs in Kokomo, Fort Wayne, and Elkhart in addition to the steel jobs in northern Indiana.
Not only are these jobs in jeopardy, but decades worth of Hoosier retirees in our state are likely to lose relatively generous retirement and health benefits and become the responsibility of the state through Medicare, Food Stamps, Heating Assistance, etc.. driving up state government expenditures as tax revenue declines.
May 4th, 2009 at 4:33 pm
ummm … Medicare, Food Stamps and Heating Assistance are all Federally funded programs, not state.
May 4th, 2009 at 4:36 pm
They have large state matching requirements.
May 4th, 2009 at 4:58 pm
Democrats are the pary of growing government rapidly while the republicans wish to grow it more slowly. Neither gives a hoot about Greenspan’s observation that all taxation is theft.
May 4th, 2009 at 5:02 pm
You are making a common mistake: confusing Medicare with Medicaid. Medicare has absolutely nothing to do with any state budget. Medicaid (health assistance to poor folk) does have a large state component.
May 4th, 2009 at 5:05 pm
Justice Oliver Wendell Holmes observed that taxes are the price we pay for civilization …(despite Greenspan’s facile quip).
May 4th, 2009 at 5:08 pm
If my billfold gets light I stop spending. I’m almost glad that there’s a budget shortfall. The Indiana State budget is inflated with costs and programs that simply should not exist. This is the perfect justification to eliminate all non-essential spending and to use the opportunity to commit to zero future spending of money’s that aren’t needed to mainatain core government function.
May 4th, 2009 at 5:26 pm
Maybe this would be a good time for Governor Daniels to explain the numbers in the CAFR, The Comprehensive Annual Financial Report.
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May 4th, 2009 at 5:32 pm
Wilson,
You are correct, I should have said Medicaid. I think you get the premise of my statement.
May 4th, 2009 at 5:36 pm
“Rainy Day” –simply what are we saving funds for if it is not for a crisis like we are experiencing. Yes, it is possible things can get worst but saving just to say you have a “surplus” balance is not quite being realistic.
May 4th, 2009 at 5:49 pm
Melyssa. call me 317-440-3174. small cook out soon for our favorite mayor……….
May 4th, 2009 at 6:02 pm
Flipper: Are you planning to grill Ballard?
May 4th, 2009 at 7:11 pm
http://realestate.yahoo.com/promo/worst-cities-for-jobs.html;_ylc=X3oDMTFpNWtldTZkBF9TAzI3MTYxNDkEX3MDOTc2MjA0NjUEc2VjA2ZwLXRvZGF5BHNsawN3b3JzdC1qb2Jz
Somewhat off the topic–but this article positively outs Indianapolis, as well as Kalamazoo as two midwestern cities that have done a good job diversifying their economies and therefore are hopefully not headed for doom and gloom like others, mainly in OH and MI.
May 4th, 2009 at 8:13 pm
In some cases the Rainy Day fund would not have to be used. The Major Moves money should be re-classed and the I 69 route south of Indianapolis put on hold.
If you read the agreement with the company leasing the Toll Road they are already paying the State Police wages on the Toll Road and building a new Post.
To help the budget why don’t the legislators re-class some of the Major Moves money from the ten year plan to extend I 69 and cover the budget line items for the State Police for two years, the BMV for two years, the INDOT for two years, the Department of Natural Resources, Indiana Department of Environmental Management, and the new State Police Posts that are still in the budget. All for two years.
All of these agencies have work and responsibilities involving the States roads, the environment and licensing of motor vehicles in Indiana. The Major Moves agreement already includes construction of facilities and wages for State Agencies – State Police and the INDOT Toll Road highway workers.
It may not seem like a great idea to push back I 69 to some but Indiana really does not need a new interstate right now. It needs creative thinkers and leaders to use what they have wisely and prudently.
May 4th, 2009 at 10:11 pm
Was it not candidate Mitch that always said about the Kernan administration when the revenue forcast came up short…..”they are not bad people just bad at governing”?
Does the same statement apply to his team and budget forecasters?
May 4th, 2009 at 10:55 pm
Aye to Shorebreak’s point of spend less, REALLY figure out where your inefficiencies are, & how to do with less. Higher education doesn’t need any new buildings right now, lower education might have to put with flat spending and be happy about it. I can’t disagree in taking money from road construction before rainy day or stimulus dollars. Big thud(s) ahead with Chrysler and GM.
May 5th, 2009 at 10:10 am
New to Indianapolis, what happens if Daniels puts his veto on the budget? I am unclear on rules here.
May 8th, 2009 at 9:36 am
Why hasn’t Daniels taken more of a lead role regarding the budget? During Mitch Daniels term as director of the OMB, Daniels oversaw a $236 billion annual surplus turn into a $400 billion deficit during his 29-month tenure. In 2002, Daniels helped discredit a report by Assistant to the President on Economic Policy Lawrence B. Lindsey estimating the cost of the Iraq War at between $100-$200 billion. Daniels called this estimate “very, very high” and stated that the costs would be between $50-$60 billion. Currently, isn’t the US goverment spending rougly $8-$10 billion a month for Iraq operations? And now we wonder why Bush let him go. Daniels also sold the Indiana Toll road to an foreign firm to shore up the budget. So my question is this, why should Hoosiers be suprised that the Indiana budget is so out of whack based on Daniels track record. Wasn’t it Mitch Daniels who said “You are entitled to all the lousy, crummy, graft-ridden government you want and are willing to pay for.” during a town hall to Lake County Residents meeting March, 2009? Yes he did and you got crummy government under Mitch Daniels. Thank the gods he got us daylight savings time.