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.
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 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.