UPDATE (Friday 10:57 a.m.): To combat revenue shortfall, state begins employee layoffs

By Associated Press

Publication Date: 11/13/2009

In light of state revenue shortfalls, the Indiana State Department of Administration Friday told 33 employees they would no longer have jobs.

According to the Indianapolis Star, Mark Everson, commissioner of the Department of Administration, said the lay-offs were "necessary belt-tightening" as the state faces a loss of revenue due to the recession. The cuts will save $900,000 in this fiscal year, which ends June 30, and about $1.6 million annually.

He said the largest number of jobs – about a dozen – are in the department's public works division. With capital projects on hold, Everson said, there was no need for those doing architectural, engineering and projects management.

Gov. Mitch Daniels recently ordered agencies to cut costs by 10 percent for this fiscal year. Last week, he said that he hoped to avoid layoffs, but was making no promises.

His press secretary, Jane Jankowski, said no other agencies were laying off people today.