Indiana governor seeks spending cuts with tax revenue drop

Eric Holcomb

Indiana’s state government agencies have been told to cut spending by 15% for the coming year in reaction to plummeting tax revenues during the coronavirus outbreak, the governor’s office said Friday.

Posted: May 22, 2020 1:44 PM

INDIANAPOLIS (AP) — Indiana’s state government agencies have been told to cut spending by 15% for the coming year in reaction to plummeting tax revenues during the coronavirus outbreak, the governor’s office said Friday.

State tax collections were about $960 million, or 44%, less than expected for April, and Gov. Eric Holcomb said the state could see a drop of more than $3 billion in tax revenue over the next 14 months.

“This is the first of what is likely to be a number of steps we’ll take to rein in state spending while we continue to provide critical government services to Hoosiers without interruption,” Holcomb said in a statement.

No cuts to school or university funding have been announced, although those areas saw significant cuts during the last recession in 2009-10.

A memo sent Thursday by Holcomb’s budget director to state agencies directs them to develop plans for 15% spending cuts during the new state budget year that begins in July. The (Fort Wayne) Journal Gazette first reported on the memo’s distribution.

Budget officials last month imposed a widespread hiring freeze for agencies that Holcomb oversees, such as the Bureau of Motor Vehicles, Department of Transportation, Department of Natural Resources and the state prison system.

“Unfortunately, we expect to continue to miss our revenue forecast for the remaining 14 months of this biennium,” Budget Director Zac Jackson said in the memo. “This projected loss of revenue puts a significant strain on the State’s financial resources.”

Holcomb said the planned cuts would help “maintain maximum flexibility to navigate a still very uncertain economic picture.”

“All options are on the table, and as we approach tax filing deadlines and better understand all of the federal funds available to Indiana, we will make more precise adjustments ahead of crafting a budget for next biennium,” he said.

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Indiana Coronavirus Cases

Data is updated nightly.

Cases: 749835

Reported Deaths: 13752
CountyCasesDeaths
Marion1031281779
Lake555181006
Allen41642691
St. Joseph36959564
Hamilton36537416
Elkhart29373459
Tippecanoe22871224
Vanderburgh22544400
Porter19339325
Johnson18412388
Hendricks17594317
Clark13202193
Madison13128344
Vigo12606253
LaPorte12400221
Monroe12175175
Delaware10949198
Howard10270225
Kosciusko9615119
Hancock8556145
Bartholomew8162157
Warrick7854156
Floyd7775180
Grant7230179
Wayne7158201
Boone6922103
Morgan6742141
Dubois6211118
Marshall6208116
Cass5997109
Henry5894108
Dearborn589078
Noble580287
Jackson508774
Shelby500897
Lawrence4735121
Gibson444293
Harrison441073
Clinton440455
DeKalb438985
Montgomery434890
Whitley406042
Huntington402281
Steuben399359
Miami392968
Jasper387054
Knox375790
Putnam372160
Wabash360683
Ripley346570
Adams344955
Jefferson335685
White330853
Daviess3031100
Wells295181
Decatur289992
Greene286685
Fayette284864
Posey273735
LaGrange273072
Scott269955
Clay266048
Washington245034
Randolph244683
Jennings235249
Spencer234231
Starke227858
Fountain219147
Sullivan214043
Owen211258
Fulton202142
Jay200932
Carroll193420
Orange188155
Perry187037
Rush175726
Vermillion174044
Franklin170235
Tipton166046
Parke149016
Pike138134
Blackford136132
Pulaski120347
Newton113036
Brown104043
Crawford102316
Benton101114
Martin91615
Warren83615
Switzerland8108
Union72810
Ohio57811
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