Governor Mitch Daniels issued the following statement this morning:
"The revenue forecast released later this morning will project somewhat greater future revenues for the state, reflecting recent and expected improvements in the Indiana economy. Coupled with the discipline dividend from years of careful spending control, this forecast, if it proves accurate, means that the state will have a little larger margin of fiscal safety looking ahead.
"This encouraging news is no reason to abandon caution or relax our discipline. Everyone remembers how erroneous most recent forecasts have been. And there are many reasons to worry that even today's anemic economic growth could slow down rather than accelerate.
"Nonetheless, the prospects as we see them hold sufficient promise that, in concert with the legislative leadership, I have decided to recommend that the upcoming budget be augmented by the addition of $150 million for K-12 education, with about a quarter of that money being used to complete the extension of full day kindergarten (FDK) to every school district in the state. Another smaller fund will provide new dollars to pay our best teachers more in the new system of rewarding performance, not seniority. Having brought FDK to roughly three-fourths of our 5-year-olds over the last four years, I have been eager to finish that job, and I thank those legislators whose support in restraining spending in other areas has created the discipline dividend that now makes it possible."