Governor Eric J. Holcomb today announced he has asked the State Budget Agency (SBA) to initiate plans to reduce state agency appropriations by 15 percent for Fiscal Year 2021 because of the sharp drop in state revenues that was reported for April and to prepare for a continued decline in state revenue because of the economic impact of COVID-19.
SBA already has initiated actions to reduce spending for the remainder of the current fiscal year, which ends June 30. Cost savings measures were instituted in April to review operations, space, travel, hiring, and many other areas for savings.
In addition to the state agency reversions, Governor Holcomb said the state would not move forward or put on hold several previously announced projects: Use of $291 million in reserves to pay for several capital projects approved in the 2020 legislative session. Bonding authority may be used to move forward with those projects later, approximately $65 million in Next Level Trails grants, and $110 million of deferred maintenance projects, including $70 million for state parks.
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