Local News

News > Local News > Pence: No Dipping Into Surplus in Next Budget

Pence: No Dipping Into Surplus in Next Budget

Some legislators question directives to cut spending below budgeted levels

Gov. Mike Pence (WIBC.com file photo: Mike Wilson)

Governor Pence says he plans to keep the pursestrings tight in the next state budget.

Pence has insisted on a reserve of one-eighth of total state spending as a firewall against recession. He's directed state agencies to trim their budgeted amounts by 3% and state universities by 2% to keep that reserve on track.

Pence says he's still working on the spending plan he'll present to legislators in five months, but says that reserve target won't change. He says it's one of Indiana's key selling points in attracting business and jobs to the state.

The state fell .5% short of expected revenues last month, the first month of the new fiscal year.

The one-eighth figure is the maximum surplus allowed by state law. Anything above that at the end of a two-year budget cycle triggers an automatic tax refund.

State Democratic Chairman John Zody charges the state is paying for its rainy day fund with "a subpar quality of life." Democratic legislators and a few Republicans have questioned the practice of withholding money legislators budgeted.

Other Articles You May Like

An IMPD officer has been charged in a domestic violence case. Daniel Bullman, 33, was charged with a total of 13...
If you have eaten at Noodles & Company recently, you might want to check your bank or credit card statement...
Indiana spends about as much now on services for illegal immigrants as it did four years ago, according to a new...
Purdue's Material Science and Electrical Engineering Building (Purdue University) For the first time in more than...
INDIANAPOLIS - Memorial Day Weekend is upon us and it’s officially the unofficial start to summer! It also means...