Senator Dan Coats (R-Ind.) today issued the following statement in response to news that the state of Indiana will close the 2012 fiscal year with a $2.155 billion reserve, the largest in state history.
"The contrast between Washington and Indiana is stunning," Coats said. "In 2005, Indiana faced a $200 million deficit and our state had not balanced its budget for seven years. Governor Daniels and his team had a vision to make much-needed changes and the people of Indiana responded. While other states increased spending and raised taxes, Indiana reduced spending, cut taxes and paid down its debts. Washington has done the exact opposite. President Obama has increased the deficit by over $5 trillion in three years and imposed the largest tax increase in American history. We need less Washington thinking and more Hoosier common-sense in the nation's capital. Indiana should serve as a model for the nation."
Under the leadership of Governor Daniels, Indiana:
Received its first Triple-A credit rating.
Slowed the rate of spending. The state's expenditures have grown at less than one-quarter of the rate of the previous decade.
Reduced the size of the state government. Indiana has the fewest state employees per capita in the country.
Paid down previous debt 43 percent.
Repaid more than $750 million of debt previously owed to schools, universities and local governments.
Repaid a $63 million loan to the Motor Vehicle Highway Fund that originated in the 1990s.
Has the lowest burden per household to fully fund public pensions in the country.
Has the smallest unfunded liability per capita for retiree health care of any state.
Reduced its combined pension and long-term debt liability as a percentage of GDP. The state is now the second lowest in the country.