The COVID-19 pandemic shrunk the state of Indiana’s revenue for fiscal year 2020 by $1.4 billion, CBS 4 reported.
With no quick turnaround expected, budget cuts are likely, Cristopher Johnston, director of the state's Office of Management and Budget told CBS 4.
"We will most likely need more austere budgets," Johnston told CBS 4. "We will mostly likely need greater (spending cuts) to manage the uncertainties ahead."
The state’s reserve fund has been drained from $2.3 billion a year ago to $1.4 billion now, which is a 37% decline, CBS 4 reported. Revenue dropped $1.5 billion during the first four months of the coronavirus pandemic, starting in March.
The state government hasn’t had any layoffs, but there has been a hiring freeze and most state agencies have been asked to cut spending by 15% for the coming year, CBS 4 reported. Universities have been told to expect 7% funding reductions.