Most state budgets are in crisis. The Big Picture's Barry Ritholtz notes that state tax revenue has fallen sharply the last two quarters. The left wing Center for Budget and Policy Priorities notes that "[a]t least 48 states addressed or are facing shortfalls in their budgets for the upcoming year."
Not Indiana. Under Mitch Daniels' leadership the state reported a $1.3b surplus. The State Auditor Tim Berry noted that they even raised school funding:
Berry stood in front of charts Friday that show Indiana increased school funding, avoided a tax hike, and maintained a surplus of about 10%. [...]
"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.
The state had $1.33 billion in its main checking account and reserves when the fiscal year ended June 30. That's roughly the same as one year ago, even though state taxes brought in $1.2 billion less than originally projected.
How's that for successful governance? No wonder there is a draft movement for Mitch Daniels for President.
(Crossposted from The Next Right)