Indiana Governor Mitch Daniels is proposing a new state budget that would cut higher education spending by three percent and eliminate optional Medicaid services for adults. The nearly $13.8 billion two-year budget was presented today to the General Assembly. Daniels calls it a spending freeze compared to previous budgets. The budget would hold funding flat for public schools and most other entities, and does not include any tax increases. Funding cuts made in the current budget cycle would not be restored. Medicaid service cuts include hearing aids, dental and chiropractic coverage, and podiatry services. Daniels is also proposing a state spending cap that would give taxpayers a refund if revenues improve and state reserves exceed 10 percent of annual needs. The State Budget Committee is going over Daniels’ proposal and plan to begin hearings next week.
Indiana Public Broadcasting and the Associated Press contributed to this report.