The Indiana State Budget Agency is initiating plans to reduce state agency appropriations by 15 percent for Fiscal Year 2021 due to the sharp drop in state revenues reported for April. Revenues are expected to continue to decline as a direct result of the economic impact of COVID-19.
Holcomb stated in a press release that in the last economic downturn the state’s General Fund revenues were nearly $3 billion less than forecasted. Holcomb added that the State Budget Agency officials believe that the loss could be even greater through the end of the Fiscal Year 2021 budget.
Cost-saving measures are already in place.
Governor Holcomb said the state would not move forward, or put on hold several previously announced projects such as several capital projects approved in the 2020 budget, approximately $65 million in the Next Level Trails grant program and $110 million of deferred maintenance projects including $70 million for state parks.