State cuts higher education amid shortfall - 13 WTHR Indianapolis

State cuts higher education amid shortfall

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INDIANAPOLIS -

Governor Mike Pence is selling the state plane and asking state agencies to cut spending as the state deals with a surprise budget shortfall.

State agencies will have to cut their budgets an additional 1.5 percent and state universities will see their state aid clipped by 2 percent as the state looks to make up a $141 million drop in tax collections. Pence said Monday the agency cuts and other moves should save the state about $57 million.

The new shortfall has been spurred in large part by the loss of $63 million in tobacco settlement money. Indiana is one a handful of states to lose a portion of the 1998 settlement proceeds for not doing enough to collect funds from some tobacco companies.

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