Pence announces cost-saving steps to offset projection shortfall
Gov. Mike Pence announced several cost-saving measures for the state Monday as a result of a projected revenue shortfall.
The November revenue report shows state revenue is $141 million lower than projected this fiscal year. Pence says the state will require agencies to hold back part of their appropriations, sell the state plane and delay expenses planned for the Indiana Biosciences Research Institute. The state will also require a two-percent reserve on university operations and line items.
Pence says the move will save the state an additional $57 million this fiscal year.
"Fiscal integrity is the foundation of prosperity," the governor said. "The cost-saving measures we are implementing today will ensure that Indiana remains fiscally sound during these uncertain times."
Pence required agencies to reserve 3 percent of their appropriations at the start of the fiscal year. Monday's announcement requires them to hold an additional 1.5 percent.
Other actions taken by the governor at the start of the year have already saved the state $116 million, the governor's office says.