Caution on Stimulus

Gov. Mitch Daniels said Indiana should use an estimated $5 billion in federal stimulus funds for one-time expenses that would finance capital projects across the state.

In a press conference last week, Daniels warned lawmakers to use caution in how they decide to spend the money.

“It is one-time money, and it must be used for one-time purposes,” he said. “There is an enormous danger of building a cliff if we allow this to come into the ongoing base of state government. In two years when it’s not there anymore, we would have to make massive cuts in order to make ends meet.”

The Republican governor said the money is meant for states that are suffering from worse budget deficits than Indiana’s.

Daniels predicted the state could be in line to receive around $5 billion in federal funds if the Senate passes a bill similar to the House’s version. Included in the expected funding is $750 million for roads and bridges, $100 million for mass transit, $250 million for K-12 capital projects, $130 million for higher-education building projects, and $150 million for clean water projects.

He added that another $1 billion in economic stimulus funds could go directly to the state’s K-12 schools.

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