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Thursday, June 23, 2011

Ind. Gov't. - Two interesting state finance stories today [Updated]

The first is from Stateline and does not use Indiana to illustrate any of the gimmicks detailed in "Budget gimmicks explained: five ways states hide deficits." The reporter is Josh Goodman.

The second is a lengthy, front-page story from today's NY Times, titled "The Indiana Exception? Yes, but...." The reporters are Michael Powell and Monica Davey. After an introduction that you won't want to miss, the very long story continues:

But Indiana is no world apart, even if Mr. Daniels would like to suggest it is. Large cracks have opened in its economic foundation, a sign of just how severe the downturn remains.

Mr. Daniels alone cannot take all credit or shoulder blame for the health of Indiana’s economy. But it is his work here — and his reputation as a cost-cutting, tough-on-labor conservative obsessed with fiscal problems — that fueled interest in his presidential ambitions before he announced that he would not run because of family considerations.

The state also serves as a case study of the often large tradeoffs required to balance the books when political leaders take the possibility of raising income taxes off the table. Fiscal conservatism, in other words, comes with its own costs. * * *

But Indiana is no world apart, even if Mr. Daniels would like to suggest it is. Large cracks have opened in its economic foundation, a sign of just how severe the downturn remains.

Mr. Daniels alone cannot take all credit or shoulder blame for the health of Indiana’s economy. But it is his work here — and his reputation as a cost-cutting, tough-on-labor conservative obsessed with fiscal problems — that fueled interest in his presidential ambitions before he announced that he would not run because of family considerations.

The state also serves as a case study of the often large tradeoffs required to balance the books when political leaders take the possibility of raising income taxes off the table. Fiscal conservatism, in other words, comes with its own costs.

[Updated on June 24th] Here is another, "Panel to Scrutinize Causes Behind Weak State Budgets."

Posted by Marcia Oddi on June 23, 2011 11:56 AM
Posted to Indiana Government