State employees receive bonuses from state budget surplus

Governor Mitch Daniels announced today he will use part of the state’s larger-than-expected budget surplus to give nearly all state employees a bonus.  The one-time bonus checks will be merit-based.  The state will use performance reviews to issue bonuses from $500 – 1,000.  Daniels says he wants to honor those who’ve helped create one of the country’s most stable fiscal states.

Daniels on Bonuses

The bonuses will cost the state roughly $15 to 20 million.  Daniels also says he is concerned about the federal debt ceiling negotiations and what he calls Washington’s inability to reduce spending.  To prepare for a potential federal default, Daniels says Indiana will continue to pad a state budgetary reserve.

Daniels on State Reserves

Daniels added that a downgrade of the U.S.’s bond rating should not affect Indiana’s triple A credit rating. 

Indiana Public Broadcasting’s Brandon Smith reports from the Statehouse.

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