[Southsider2k12]

http://www.nwitimes.com/articles/2006/12/2...24a005a0b5f.txt

Governor says spending restraint his top budget priority



By The Times

This story ran on nwitimes.com on Wednesday, December 20, 2006 11:23 AM CST


INDIANAPOLIS | Gov. Mitch Daniels says he hopes the new year will bring fiscal restraint from the Indiana General Assembly.

Speaking to reporters this morning, the Republican governor said limiting spending growth to 4 percent is his top priority for the new biennial state budget.

Revenues, fueled primarily by income and sales taxes, are expected to grow by 4.2 percent and 4.5 percent, respectively, in the next two fiscal years, and Daniels says its crucial that legislators leave some breathing room to guard against an unexpected economic downturn.

"Our goal should be a further strengthening of the state's finances which, though vastly improved, are not as secure as we want them to be," Daniels said.

The governor said his plan to begin phasing in full-day kindergarten in state schools n at an estimated state cost of $150 million over two years n is the only program he is pushing that requires additional state money.

Other initiatives, including proposed a Illiana Expressway through Lake and Porter counties, would be paid for with private dollars, or at least no "new" state money.

One of those initiates, a 10-year, $1.16 billion contract to overhaul the eligibility process for welfare programs, has won the approval of federal regulators, Daniels announced. The governor said he will decide whether to sign the contract with an IBM-led consortium before year's end.

[Roger Kaputnik]

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