INDIANAPOLIS — Indiana Gov. Mitch Daniels is proposing a new state budget that would cut higher education spending by 3 percent and eliminate optional Medicaid services for adults such as hearing aids, dental and chiropractic coverage and podiatry services.
The budget would hold funding flat for public schools and most other entities, and does not include any tax increases. Funding cuts made in the current budget cycle would not be restored. The Daniels administration says the state must hold spending at current levels as it waits for revenues to improve.
Daniels is also proposing a state spending cap that would give taxpayers a refund if revenues improve and state reserves exceed 10 percent of annual needs.
The State Budget Committee is meeting Thursday afternoon to go over Daniels' proposal.
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