State Auditor Speaks To Breakfast Optimist ClubState Auditor Tim Berry spoke about Indiana's fiscal situation this morning in Warsaw.
Berry spoke during the Warsaw Breakfast Optimist Club meeting at Kosciusko County Fairgrounds.
Berry said in June the state started its fiscal year, and total revenue is currently down $957 million.
Total revenue in Indiana is down 5.6 percent or $719 million from 2009 levels, Berry said.
He said total revenue is down 12.3 percent in the last two years, less than the fiscal year 2005 revenue collections. The levels are larger than the shortfalls in 2002.
There is a $1.2 billion gap between revenue and expenditures this year and there is $188 million left in reserve, according to Berry.
Berry discussed general fund expenditures and said state agencies received the largest budgetary cuts of 61 percent, K-12 education funding was reduced by 21 percent and higher education was reduced by 18 percent.
He said 17 of the past 20 months show negative revenue collections.
"If revenues are down we need to manage expenditure growth," Berry said.
Annual expenditure growth from 1996-2004 was 5.88 percent, and from 2005-2010 expenditure growth has been 1.66 percent.
Sales tax dollars are down by 8.4 percent since 2008, and income tax collections are down by 20 percent since 2008.
"We need to shrink government and reduce spending and live within our means to be fiscally sound," Berry said.
Berry said gaming revenue is the most stable with $53 million in racino money collected this year.
Berry said Governor Mitch Daniels has imposed measures to offset revenue shortfalls.
Some of the measures include all state agencies reducing spending with a 10 percent reduction from the 2010 budget allocation, and a 15 percent reduction from the 2011 budget allocation.
Other measures include no raises for state employees and state agency capital projects being deferred.
Berry said state payroll is at its lowest level since 1976, and is 25 percent lower than it was 15 years ago.
