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Governor Daniels Outlines Budget Proposal for Special Session

By Marianne Holland, WYI

Posted June 2, 2009

The meeting comes one day after Governor Mitch Daniels appealed directly to Hoosiers in a five minute radio and television address that aired last night.  Daniels commended the legislature for what he says were several years of keeping spending levels affordable, keeping the state from facing bigger cuts.  But he warned that for a budget to pass the special session, increases would be few and far between.

"Total state spending would be reduced by two and a half percent.  Many good ideas will just have to wait.  Across state spending, nothing, and I mean nothing, goes up.  When your income drops by 8 percent, you can't increase your spending on anything," he said.

Governor Daniels made one exception; offering an olive branch to Democrats by dipping into state reserves to pay for public education.  The move reversed his previous position to protect all of the reserves.  The governor says he's now willing to spend 25 percent of that money toward student aid and K through 12 education.

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