UPDATE (Friday 12:22 pm): State numbers continue to decline, more spending cut

By Associated Press

Publication Date: 11/06/2009

INDIANAPOLIS – Indiana Governor Mitch Daniels has announced a series of spending cuts and other steps designed to offset a continuing multimillion dollar decline in state revenues.

Daniels said Friday that tax collections for October were $46 million below forecast, and are $310 million behind for the first four months of the fiscal year. He says if the trend continues without spending cuts, Indiana's reserves would be wiped out by next August.

He's ordered state agencies to cut spending by 10 percent, reduced reimbursements to some Medicaid providers. Agencies will also offer employees the chance to take unpaid leave.

Daniels says those and other steps should offset the shortfall in revenue to date, but more action might be needed if tax collections continue to miss their target.

Check back to purdueexponent.org as this story develops.