State Budgets: Indiana Imposes Modest Cuts to Balance Budget December 31, 2008 Joseph Bishop-Henchman Joseph Bishop-Henchman After announcing that the current $13.3 billion 2009-11 biennial budget faced a shortfall of $763 million, Gov. Mitch Daniels (R) proposed a 3% cut in executive agency budgets (on top of a 7% cut earlier imposed), a 3% reduction in grants and subsidies, a ban on out-of-state travel unless approved by budget officials, spending and hiring restrictions, and a pay freeze for 2009. Daniels promised no cuts to key state programs and declined to consider raising taxes or tapping the state’s $1.4 billion rainy day fund. Daniels is also pursuing a remarkable effort to consolidate Indiana’s excessively duplicative local government functions. More on Indiana here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Indiana Tags State Tax and Spending Policy