INDIANAPOLIS— 12/10/13 Governor Mike Pence today announced the state will take a number of cost-saving measures in light of the November revenue report, which shows state revenue is $141 million lower than projected this fiscal year.
The state will require agencies to hold back an additional 1.5 percent of their appropriations, sell the state plane, delay planned expenses for the Indiana Biosciences Research Institute, and require a 2 percent reserve on university operations and line items. These steps will save the state an additional $57 million this fiscal year.
“Fiscal integrity is the foundation of prosperity,” said Governor Pence. “The cost-saving measures we are implementing today will ensure that Indiana remains fiscally sound during these uncertain times.”
The measures come on top of previous steps to preserve the state’s structural surplus, which maintains the state’s fiscal integrity and contributes to Indiana’s AAA credit rating. At the start of the fiscal year Governor Pence required agencies to reserve 3 percent of their appropriations, paid off the Miami Correctional Facility bonds and transferred Medicaid and State Highway Fund surpluses to the state’s general fund. These actions already saved the state $116 million.
The November revenue report and commentary from Budget Director Brian Bailey have been posted on the State Budget Agency webpage. The report can be found here.
The full list of cost-saving measures can be found here.