Indiana State Budget Agency Makes a $40 Million Mistake

Foster Kids Foot the Bill

What is going on?

In a nutshell the state is required to fund pensions fully for public safety employees. In preparing the budget, the State Budget Agency underestimated the amount needed by $40 million. Since this funding is required by law, the Agency had to come up with $40 million fairly quickly. They did so by making a unilateral decision to transfer the money from the DCS family and children appropriation where it “was not needed.”

Is this legal?

Yes, they have the right to do this. The manner in which it was done, however, has raised questions with some Hoosiers.

Who raised questions about the issue?

State representative Bill Crawford, chairman of the House Ways and Means Committee, discovered the change by chance when members of his staff were researching another issue and came upon the transfer. In a letter to the other Democrat members of the House of Representatives Rep. Crawford raised these issues:

  1. Transparency.
    No other Agency or branch of government was consulted or even informed of this substantial transfer. Rep. Crawford, as chairman of the committee which controls the purse strings in the legislature, asserts, “I should have at least been informed, if not actively consulted in this matter of paramount budgetary significance.”
  2. Missing the mark by $40 million in making a budget estimate is not a trivial matter. Is this a one-time happening or will the State Budget Agency be far off every year?
  3. Most important of all, according to Rep. Crawford, is “the impact that this transfer may have had (and possibly will have) on the provision of services to the clients of DCS.”

The DCS had already drastically slashed their budget for the current year. This transfer of $40 million reduces funds still more. These cuts will impact programs, staff, foster parents and foster children in every county in Indiana. Again it is our most vulnerable citizens who are being shortchanged."