State gov’t kept $1.3B surplus intact

INDIANAPOLIS (WISH) - The recession has hit Indiana state government hard, but not as hard as most other states.

The state government has a budget of almost $14 billion and the economy forced spending cuts of $960 million in fiscal year 2009. Still, the bottom line looks good.

"If Indiana were a stock it would be a buy option today as we announce these fiscal year end numbers," said State Auditor Tim Berry.

Berry stood in front of charts Friday that show Indiana increased school funding, avoided a tax hike, and maintained a surplus of about 10%.

State government took in more than it spent, but the surplus grew by just $26 million. That surplus is now $1.3 billion.

It’s a silver lining though Democrats are happy to point to the surrounding dark cloud.

"The fiscal numbers are propped up to a large degree by the federal stimulus dollars that have come to Indiana over the past several months," said House Democratic Spokesman John Schorg.

Republicans, including Berry, acknowledge the billion dollar boost from Washington but they also want credit.

"Measures that were taken early on by Governor Mitch Daniels to restrain spending have amounted for a large amount of these fiscal reserves," Berry said.

And, the Democrats want credit, too.

But the picture is not entirely rosy and the future is not secure. Continued spending cuts by state government will lead to money trouble in local school districts and tuition hikes at colleges and universities even if the state surplus remains intact.