Daniels speaks in WL, warns of sobering state revenue

By Ty Jepson

City Editor

Publication Date: 11/06/2009

Michael Carney | Photo Editor

Indiana Gov. Mitch Daniels addresses the Greater Lafayette Commerce during a luncheon Thursday.

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Governor Mitch Daniels spoke in West Lafayette Thursday, focusing on the economy and numbers from the state budget, which he called “sober.”

Daniels stressed the importance of keeping taxes low and continuing to find ways to cut spending so Indiana “can come out of this recession earlier and much stronger than other states.

“This has been our attitude. Everybody abhors the idea of a recession, but if there’s going to be one then we want our state to try to meet it head on,” he said.

Click here for video of Daniels talking with local media.

In the month of September, state tax collections were below target by $166 million. Numbers for October are to be released today.

The fiscal year started on July 1 and state revenue for the first quarter was $254 million less than forecast in May, of which Daniels said “we will have to deal with it.

“Recent forecasts have not been right. One quarter into the two year budget cycle, this one’s way behind right out of the starting block,” he said. “We will have to make, at some stage, at least temporarily, some unwelcome and unpleasant choices.”

Daniels reinforced that Indiana is faring better than many other states but also that the recession is not over yet.

Dana Smith, director of Greater Lafayette Commerce, said Gov. Daniels’ coming to Tippecanoe county made a statement about local businesses.

“The fact that he came up and spent an hour speaking to the local business community means we have some respect in Indianapolis, as we should,” Smith said.

According to Smith, Daniels’ presentation offered interesting, but eye-opening, details about the state’s budget.

“He gave a very interesting presentation, or talk, about the budget and how state income was not what it should have been,” Smith said. “It was informative, but the information that was given is going to make us think a little bit.”

Smith said the state budget isn’t where it needs to be and that people in the state need to think about a course of action to fix it.

“In June, we put together a balanced budget and we’re already $300 million in the hole,” Smith said.