Gov. Daniels announces more spending cuts

Gov. Mitch Daniels announced a series of spending cuts and other steps to offset a continuing multimillion dollar dive in state revenues. Gov. Daniels has ordered agencies to cut spending by 10 percent; reductions in reimbursement rates for some Medicaid providers; no pay raises for state employees next year; delays in some building projects; and state employees be allowed to take unpaid leave voluntarily. The budget Daniels and state lawmakers put together using the May forecast had called for the state to have $1 billion surplus at the end of the spending cycle in June 2011