No can do! That's the message Governor Mitch Daniels is sending to state lawmakers about their spending wish lists for the upcoming 2009 legislative session.
"There are going to be things precious to me that have to be postponed, but I'm going to be in good company because that is going to be true of everybody," Daniels said. "Everybody is going to have to be willing to forgo something that they believe in and would like to do right now but can't."
The recession and flat revenue collections are contributing to a gloomy economic forecast for the state. The state is already facing a projected $763 million shortfall in the current budget that ends on June 30. New revenue projections predict the state must also cut an additional $600 million to stay in the black this current budget cycle.
Indiana is one of a handful of states not in the red, and Governor Daniels refuses to tap into the $1.4 billion currently in the rainy day fund to bail the state out.
Governor Daniels has already announced state employees will not get raises in 2009. He said he made the decision with regret, but "With the sobering challenges ahead of us, I believe the best we can do is to maintain current pay levels."
Daniels has also asked state agencies to cut another 3 percent in addition to the 7 percent he had previously ordered. Other cost-cutting measures include a strategic hiring freeze, restricting out-of-state travel, cutting operating expenses for higher education by 1 percent, putting numerous capital projects on hold, and transferring surplus budgets from state agencies to the state's main checking account.
Payments to public schools will continue to be made as budgeted, public safety will not be cut, and state employees will not be laid off. Those areas of state government will not be affected by the state's belt-tightening measures.
We applaud Governor Daniels for being fiscally responsible and having the courage to make tough decisions that are in the best interest of all Hoosiers and not just a certain select few.
It's too bad some of our local elected officials can't do the same.