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