Daniels Announces More Budget Cuts

Indiana Governor Mitch Daniels says a continuing decline in tax revenue has forced the state to impose more spending cuts.

Daniels announced Friday that Indiana will cut $150 million in funding for state colleges and universites to close the budget gap.

He says university leaders will work with the commission for higher education in deciding exactly where the cuts will be made.

Daniels added that other steps will be taken because of missed revenue targets, including a reduction in the state-owned fleet of vehicles.

This is one of hundreds of examples of small things, some very tiny things that add up if you do them relentlessly and are willing to look in every corner for something that might stretch a tax dollar. Cars (are) not the smallest example at all,” he said.

Indiana tax collections for November were $144 million below forecast and are $475 million below target for the first five months of the fiscal year.