Reducing State Agency Spending by 10% Annually

As your next Governor of the State of Indiana, I recognize the critical importance of fiscal responsibility, especially in challenging times. The pandemic year of 2020 underscored the need for prudent financial management. During that period, the Governor’s office took decisive action by issuing a memorandum directing every state agency to reduce spending by 10% - 15% for 2021. With this in mind, I will issue annual Executive Orders for every state agency to reduce spending by 10% based on their spending for the previous year.

The results were remarkable: despite the economic uncertainties, the State of Indiana not only met but exceeded expectations. The state government achieved a budget surplus of several billion dollars, demonstrating that effective governance is possible even when operating below the budgeted levels set by the Indiana General Assembly.

Justification for Annual Executive Orders on Spending Reduction:

Sustainable Finances: By annually mandating state agencies to reduce their spending by 10%, we ensure that our financial house remains in order. This disciplined approach prevents unnecessary bloat and promotes long-term sustainability.
Building Resilience: The surplus from 2021 serves as a buffer against unforeseen challenges. By consistently trimming expenditures, we create a resilient financial ecosystem that can weather economic fluctuations, emergencies, and other contingencies.
Efficiency and Accountability: The Executive Orders hold each agency accountable for their spending. By basing the reduction on the previous year’s actual expenditures, we encourage efficiency, innovation, and responsible resource allocation.
Strategic Prioritization: Our commitment to reducing spending does not compromise essential services. Instead, it compels us to prioritize critical areas such as education, healthcare, infrastructure, and public safety. We allocate resources where they matter most.

In summary, these annual Executive Orders reflect our commitment to prudent stewardship. By drawing inspiration from the successful 2020 spending reduction, we pave the way for a fiscally sound Indiana—one that serves its citizens effectively while maintaining financial health.