CHICAGO — Indiana drained nearly half of its prized $1.3 billion reserve fund last year to offset revenue collections that tumbled more than $1 billion below original budget projections.

The triple-A rated state started its two-year 2010-2011 budget period last July with $1.3 billion in reserves, and ended fiscal 2010 last month with $830 million, state auditor Tim Berry said at a press conference Friday after closing the state’s books for the fiscal year.

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