Indiana governor targets colleges for $150M in cuts

INDIANAPOLIS — Indiana Gov. Mitch Daniels says the state will cut $150 million in funding for state colleges and universities because of a continuing decline in tax revenues.

Daniels also said Friday that other steps will be taken because revenues are missing their targets significantly.

Tax collections for November were $144 million below forecast, and for the first five months of the fiscal year are $475 million below target. Daniels says if previously announced budget cuts and the new steps were not made, what was a $1.3 billion surplus in July would be wiped out by next summer.

Daniels says universities will work with the Commission for Higher Education in deciding how the $150 million in cuts will be made. A new revenue forecast will be presented on Dec. 15.