State finishes fiscal year 2010 in the black

INDIANAPOLIS (WISH) - With help from stimulus money and reduction in spending, Indiana finishes the fiscal year in the black.

Despite a drop in revenue of more than 12 percent over the past two years, the state has been able to maintain money in its rainy day fund. On average, state agencies reduce their spending just under 10 percent for the fiscal year ending June 30th.

But, the state reserve balance is now at $830 million down from $1.32 billion at the close of last year. Adding to the state’s financial worries is that next year is estimated that the state will use all but $188 million of the rainy day fund to stay in the black.

None the less, the state is saying though, Indiana spent less money during the most recent fiscal year than for the prior year for the first time in modern Indiana history.

Governor Mitch Daniels lauded the result saying, “Staying in the black when most states are broke and cutting taxes while they are raising them is the best way to help Hoosier families through this recession and out-compete other states for the new jobs we need. Thanks to our agency heads and state employees who are helping us find new ways to stretch tax dollars and do more with less every day.”