Ind. schools warned of funding cuts

INDIANAPOLIS (AP) - Indiana's schools chief is warning local school superintendents that cuts to education funding are possible because of the state's fiscal woes.

The Associated Press has learned that state Superintendent Tony Bennett told local superintendents during a conference call Thursday that they should hold off on major expenditures. The state superintendent also cautioned them against making teacher contract decisions until the state's revenue troubles are resolved.

Bennett spokesman Cam Savage confirmed details of the call.

The head of a school administrators group says Bennett reported that state revenues for the first four months of the fiscal year fell $310 million short of predictions. Dennis Costerison said local superintendents were told that nothing is off the table for spending cuts.

Gov. Mitch Daniels plans a news conference about state revenues on Friday.