Saturday, January 1, 2011

State lawmakers to face tough budget decisions

DEANNA MARTIN | Associated Press
INDIANAPOLIS — Indiana lawmakers will be staring at many tough budget decisions when they start their 2011 session on Wednesday.

They've watched Republican Gov. Mitch Daniels slash millions of dollars in state spending over the last two fiscal years — and Senate Appropriations Chairman Luke Kenley says lawmakers will now have to do their share of budget cutting.

They'll have to do it without the $1 billion in federal stimulus money that they had when writing the last budget two years ago.

The revenue forecast released in December shows that Indiana is expected to take in $13.4 billion during fiscal year 2012 — about $500 million less than current spending. But Daniels says he believes the state can have a balanced budget without tax increases or more funding cuts to schools.

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