Lawmakers mull reaction to $206M error

MADISON, Ind. (AP) - A panel of state lawmakers is considering how to handle the state's latest massive tax error.

Members of the State Budget Committee are set to meet early Friday morning and discuss how the state forgot to distribute $206 million owed to the counties. State Budget Director Adam Horst announced last week that the problem was discovered by the state while investigating a previous, $320-million error uncovered in December.

Gov. Mitch Daniels has called for an independent audit of the state's accounting measures. The top leaders in the Indiana House and Senate meanwhile say they want to help pick that outside auditor.

Democrats have been calling for an audit since the first mistake was discovered in December but were initially rebuffed by Republicans.