Faced with another month of lower-than-expected revenues, Indiana Gov. Mitch Daniels ordered state agencies to defer all capital projects and to cut their budgets by 10%.
The measures, combined with other cuts, are expected to save up to $400 million.
October’s revenue collections fell below forecast by $46 million, the governor’s office said.
For the first four months of the fiscal year, general fund revenues are down $309 million, or 7.4%, below projections.
Daniels ordered that until further notice, state agencies defer their capital projects, including new buildings and structures, infrastructure and system upgrades, and site improvements.
He also ordered a series of other measures to shore up the budget, including transferring some dedicated funds into the general fund, reducing Medicaid reimbursements to some providers, and offering all employees unpaid voluntary leave for the remainder of the fiscal year.
If revenues continue to decline, the state’s $1.3 billion reserve fund will be depleted by August 2010, the governor said.
