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Thursday, January 1, 2009

Gov. orders new spending cuts amid bleak forecast

INDIANAPOLIS - Gov. Mitch Daniels ordered most state agencies to cut their spending even further Thursday to eliminate a projected $763 million spending gap through next June.

No state employees will lose their jobs as a result of the cuts, but they won't get 2009 pay raises and fewer will travel out of state as a result of the additional 3 percent cuts on top of 7 percent cuts a year ago.

Daniels made the cuts after the latest state revenue forecast showed the state collecting $721 million less in tax dollars during the current budget cycle than had been forecast just a year ago.

Some items won't be affected: The state still will distribute payments to K-12 schools as budgeted, and public safety won't be cut, Daniels said during a news conference in his office. read more...


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