Senate Leadership Supports Spending Reductions

Press Release

STATEHOUSE (Nov. 6, 2009) – President Pro Tem David Long (R-Fort Wayne) said he supports spending cuts and wage freezes announced today by Gov. Mitch Daniels and added the Senate had prepared for similar cuts in anticipation of continuing state revenue declines.

For October, state revenue was again below the May 2009 forecast. Total tax collections were $46 million below the forecast for the month. During the first quarter of the fiscal year which started in July, general fund revenues were $309 million or 7.4 percent below forecasted figures.

Daniels today initiated state agency spending cuts following the fourth consecutive month of lower-than-forecasted state revenues.

Long said similar budget action will be taken immediately by state senators:

-The Senate will reduce overall spending by an additional 5 percent, adding to cuts already made in this year’s Senate budget;

-The Senate will continue its current hiring freeze;

-Senators will forego pay increases in 2010;

-Senate employees will again forego across-the-board pay increases in 2010; and

-Senate technology upgrades will be deferred.

Long said lawmakers recognize the need to take such action, “so funding for schools and public safety can be protected as much as possible.”

Source: Indiana Senate Majority Caucus