Gov. Mitch Daniels said Indiana's education budgets are likely to be spared additional cuts if revenues remain at their current levels. Late last year he ordered $300 million cut from the K-12 budget and $150 million from the higher-education budget to help offset declining revenues. The K-12 budget accounts for more than half of the state's general fund.

"It's been our goal from the beginning to minimize any trimming of education," Daniels said at a lunch speech last week.

Daniels has ordered several rounds of cuts to deal with falling revenue over the past two years as most agencies cut their budgets by 25%. The outlook does not include expected federal money from the new $26 billion federal jobs law.

Indiana is expected to receive a total of $207 million from the bill, signed last week by President Obama.

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