INDIANAPOLIS | Local schools and nearly everything funded by state government will not suffer additional budget cuts in the next two years -- but they won't get any new money, either.
Gov. Mitch Daniels' budget for the 2012-13 budget period, which begins in July 2011, calls for holding the line on state spending and mostly relies on one-time funds and growth in state tax revenues to wipe out the state's structural deficit by June 2013.
While an absence of cuts is good news for state agencies that have seen their budgets slashed by 20 to 25 percent over the past two years, not everyone escaped the governor's blade.
Daniels is calling for a 3 percent budget reduction to colleges and universities. That's on top of a 6 percent budget cut imposed last year.
The budget also proposes eliminating some Medicaid services for adults, including dental, podiatry and chiropractic, as well as hearing aids.
In addition, public broadcasting would receive no state funding under the governor's plan.
The Republican governor's budget does not include any tax increases to raise additional revenue. By June 2013, Indiana will have an estimated $724.7 million in state reserves, according to the plan.
Daniels' budget staff will present the governor's budget to state lawmakers on the State Budget Committee this afternoon.
The Republican-controlled Indiana House and Senate will hold hearings over the next three months and negotiate the details of the state budget before voting to enact it.
A final vote on the budget is expected in April.