Taxpayer Friendly Budget 2003-05

(April 25, 2003 Version)

Watchdog Indiana proposes a Taxpayer Friendly Budget (TFB) for the State of Indiana for fiscal years 2002-03, 2003-04, and 2004-05. Table 1 below summarizes the TFB.

Table 1
Taxpayer Friendly Budget 2003-05
General Fund And Property Tax Replacement Fund
(compiled April 25, 2003)
(amounts expressed in millions of dollars)

Revenue Sources	FY 2003	FY 2004	FY 2005
General Fund Revenue Forecast (Dec., 2002)	7,184.5	7,187.3	7,487.3
Property Tax Replacement Fund Revenue Forecast (Dec., 2002)	2,741.0	3,552.5	3,756.8
DSH	66.3	66.3	66.3
Transfer From Lottery/Gaming Surplus Account (Build Indiana Fund)	175.0
Riverboat Wagering Tax Accelerated Distribution (see Note 2)		67.6	5.1
Transfer Of Build Indiana Fund Excess		14.0	14.0
Transfer From Dedicated Fund Balances	69.7	150.0
Transfer From Rainy Day Fund	59.5	200.9
Homestead Credit Overpayment Correction	37.0	111.4	132.1
Tobacco Master Settlement Agree. Trust Fund Allocation Elim. (3)		51.0	51.7
2002 Higher Ed. House Enrolled Act 1196 Spending Decreases	29.0
2002 K-12 Education House Enrolled Act 1196 Spending Decreases	119.1
Higher Education Allotment Payment Delay	2.9
Tuition Support Distribution Payment Delay	18.2
Property Tax Replacement Credit Payment Delay	340.6
Reversions (unspent budget appropriations)	420.6
Total Revenue Sources	11,263.4	11,401.0	11,513.3

Spending Areas	FY 2003	FY 2004	FY 2005
Revised Revenues Forecast (Apr., 2003)	(50.0)	(47.2)	(51.8)
Transfer To Rainy Day Fund			(25.2)
Transfer To Indiana Growth Fund (economic development programs)		(50.7)	(50.7)
Manufacturing Inventory Tax Credit (from Prop. Tax Replcmnt Fund)		(72.4)	(148.0)
Tobacco Master Settle. Agree. Trust Fund Appropriation Incr. (4)		(48.1)	(49.8)
Budgeted Appropriations	(10,497.8)	(11,174.6)	(11,178.9)
Adjustments To Appropriations	(68.7)
2002 General Assembly Regular Session Spending Increases	(1.7)
2002 General Assembly Special Session Spending Increases	(589.4)
Judgments And Settlements	(55.7)	(8.0)	(8.0)
Total Spending Areas	(11,263.3)	(11,401.0)	(11,512.4)

SOURCE: State of Indiana Budget Report for the Biennium July 1, 2003 to June 30, 2005
( available online at http://www.in.gov/sba/budget/2003_budget/as_submitted/index.html )

NOTES:
1. FY = Fiscal Year (e.g. FY 2004 = July 1, 2003 to June 30, 2004)
2. Riverboat Wagering Tax Accelerated Distribution from 03/31/03 HB 1001 Fiscal Impact Statement
3. Tob. Master Settle. Agreement Trust Fund Alloc. Elim. from 03/31/03 HB 1001 Fiscal Impact Stmt
4. Tob. Master Settle. Agree. Trust Fund Appropr. Incr. from 03/31/03 HB 1001 Fiscal Impact Stmt

The TFB is based on the Governor’s State of Indiana Budget Report for the Biennium July 1, 2003 to June 30, 2005. Table 2 below summarizes the Governor’s Budget (GB).

Table 2
2003-05 Budget Recommendations From The Governor
General Fund And Property Tax Replacement Fund
(compiled January 29, 2003)
(amounts expressed in millions of dollars)

Revenue Sources	FY 2003	FY 2004	FY 2005
General Fund Revenue Forecast	7,184.5	7,187.3	7,487.3
Property Tax Replacement Fund Revenue Forecast	2,741.0	3,552.5	3,756.8
DSH	66.3	66.3	66.3
Transfer From Lottery/Gaming Surplus Acct. (Build Indiana Fund)	175.0
Transfer Of Riverboat Revenue Counted Retroactive To 07/01/02		33.0
Transfer Of Local Revenue Sharing For Non-Gaming Counties		66.0	33.0
Transfer Of Build Indiana Fund Excess		14.0	14.0
Transfer From Dedicated Fund Balances	69.7	150.0	29.9
Increase In Administrative Fees		8.8	8.8
Transfer From Rainy Day Fund	46.5	213.9
2002 Higher Ed. House Enrolled Act 1196 Spending Decreases	29.0
2002 K-12 Ed. House Enrolled Act 1196 Spending Decreases	119.1
Higher Education Allotment Payment Delay	2.9
Tuition Support Distribution Payment Delay	18.2
Property Tax Replacement Credit Payment Delay	340.6	14.5	11.1
Reversions (unspent budget appropriations)	420.6	25.0	185.4
Total Revenue Sources	11,213.4	11,331.3	11,592.6

Spending Areas	FY 2003	FY 2004	FY 2005
Transfer To Rainy Day Fund			(31.6)
Budgeted Appropriations	(10,497.8)
General Government		(320.7)	(323.9)
Corrections		(596.1)	(611.6)
Other Public Safety		(70.3)	(70.3)
Conservation And Environment		(77.8)	(77.9)
Economic Development		(48.0)	(48.0)
Transportation		(0.5)	(0.5)
Mental Health		(240.7)	(240.7)
Public Health		(103.5)	(103.7)
Medicaid		(1,343.5)	(1,452.3)
Other Social Services And Veterans		(449.1)	(449.1)
Higher Education		(1,398.8)	(1,394.9)
Elementary & Secondary Education		(3,808.8)	(3,774.7)
Teachers Retirement		(305.5)	(346.8)
Other Education		(11.7)	(11.7)
Property Tax Replacement And Homested Credits		(2,305.5)	(2,414.5)
Distributions - General Fund		(40.8)	(41.1)
Higher Education Construction		(12.8)	(12.8)
Other Construction		(189.2)	(177.6)
Adjustments To Appropriations	(68.7)
2002 General Assembly Regular Session Spending Increases	(1.7)
2002 General Assembly Special Session Spending Increases	(589.4)
Judgments And Settlements	(55.7)	(8.0)	(8.0)
Total Spending Areas	(11,213.3)	(11,331.3)	(11,591.7)

SOURCE: State of Indiana Budget Report for the Biennium July 1, 2003 to June 30, 2005
( available online at http://www.in.gov/sba/budget/2003_budget/as_submitted/index.html )
NOTE: FY = Fiscal Year (e.g. FY 2004 = July 1, 2003 to June 30, 2004)

There are some important differences between the Taxpayer Friendly Budget (TFB) and the Governor’s Budget (GB). Please send an E-mail or visit the Watchdog Indiana Forums to express your opinion regarding these Taxpayer Friendly differences.

BUDGET CUTS: The TFB cuts the Governor’s budgeted appropriations $148.7 million for FY 2003-04 and $373.2 million for FY 2004-05. These General Fund cuts take the place of $25 million in FY 2003-04 reversions and $185.4 million in FY 2004-05 reversions.

A "technical analysis" approach was taken to determine what TFB cuts should be made in those state agencies that receive revenue from the General Fund. This technical analysis approach takes out much of the lobbying emotion involved with a "needs analysis" approach.

Listed next are the technical analysis steps taken to make the TFB cuts of $148.7 million for FY 2003-04.
A. Identify those agencies whose Recommended Total Expenditures exceed their FY 2002-03 Estimated Total Expenditures.
B. Identify Step A agencies whose Recommended General Fund Expenditures exceed their FY 2002-03 Estimated General Fund Expenditures.
C. Cut the Recommended General Fund Expenditures of each agency identified in Step B by 15.79%.
D. Limit the cuts in Step C to where FY 2003-04 Watchdog General Fund Expenditures do not fall below the FY 2002-03 Estimated General Fund Expenditures.
E. Limit the cuts in Step D to where FY 2003-04 Watchdog Total Expenditures do not fall below the FY 2002-03 Estimated Total Expenditures.
F. 410 Division Of Mental Health cuts were reduced $29,571 by choice.

Listed next are the technical analysis steps taken to make the TFB cuts of $373.2 million for FY 2004-05.
A. Identify those agencies whose Recommended Total Expenditures exceed their FY 2003-04 Watchdog Total Expenditures.
B. Identify Step A agencies whose Recommended General Fund Expenditures exceed their FY 2003-04 Watchdog General Fund Expenditures.
C. Cut the Recommended General Fund Expenditures of each agency identified in Step B so they do not exceed FY 2003-04 Watchdog General Fund Expenditures.
D. Limit cuts in Step C to where FY 2004-05 Watchdog Total Expenditures do not fall below the FY 2003-04 Watchdog Total Expenditures.
E. Cut each agency's FY 2004-05 Watchdog General Fund Expenditures after Step D by 0.86%.
F. 500 Division Of Family And Children cuts were reduced $564,306 by choice.

The application of all these technical analysis budget cut steps for the 2003-05 biennium is summarized in Table 3 below.

Table 3
Watchdog Indiana Budget Cuts Computation
(compiled March 3, 2003)

FY 2003-04 Agency Budget Cuts	FY 2002-03 Estimated Gen. Fund	FY 2003-04 Recommended Gen. Fund	Watchdog Cuts (4)	FY 2003-04 Watchdog Gen. Fund	Percent Change (1)
004 Senate	8,921,744	9,180,307	258,563	8,921,744	0%
017 Legislative Council and the Legislative Services Agency	9,258,600	9,383,000	124,400	9,258,600	0%
023 Court Of Appeals	8,241,177	8,936,464	695,287	8,241,177	0%
024 Clerk of the Supreme and Appellate Courts	891,555	894,090	2,535	891,555	0%
026 Judicial Center	2,123,530	2,226,780	103,250	2,123,530	0%
028 Tax Court	570,805	587,025	16,220	570,805	0%
038 Lieutenant Governor	2,586,330	3,080,047	408,717	2,671,330	3.28%
046 Attorney General	12,436,938	12,963,444	115,978	12,847,466	3.30%
048 Treasurer Of State	868,275	871,152	2,877	868,275	0%
061 Department Of Administration	94,519,414	121,483,422	19,182,232	102,301,190	8.23%
063 Indiana Election Commission	1,028,224	1,111,179	82,955	1,028,224	0%
070 State Personnel Department	4,204,012	4,224,390	20,378	4,204,012	0%
072 Public Employees' Retirement Fund	10,528,209	10,723,411	195,202	10,528,209	0%
074 Employee Appeals Commission	148,442	149,282	840	148,442	0%
075 State Ethics Commission	254,991	255,549	558	254,991	0%
080 State Board Of Accounts	17,977,901	18,244,502	266,601	17,977,901	0%
085 Information Technology Oversight Commission	563,403	663,403	100,000	563,403	0%
090 Department Of Revenue	52,390,840	54,467,724	2,076,884	52,390,840	0%
103 Law Enforcement Training Academy	713,811	1,595,111	251,868	1,343,243	88.17%
195 Indiana Department Of Gaming Research	150,000	300,000	47,370	252,630	68.42%
210 Insurance Department	2,964,200	3,378,116	26,040	3,352,076	1.30%
215 Department Of Local Government Finance	3,884,466	4,371,203	486,737	3,884,466	0%
217 Indiana Board Of Tax Review	1,256,141	1,375,108	118,967	1,256,141	0%
220 Workers' Compensation Board	1,822,529	1,823,610	1,081	1,822,529	0%
225 Department Of Labor	5,080,869	5,276,984	196,115	5,080,869	0%
245 Professional Standards Board	3,131,626	6,806,524	1,074,750	5,731,774	83.02%
300 Department Of Natural Resources	66,251,334	69,021,291	2,769,957	66,251,334	0%
310 White River Park Commission	1,286,699	1,336,699	50,000	1,286,699	0%
315 World War Memorial Commission	2,086,965	4,354,879	687,635	3,667,244	75.72%
351 State Board Of Animal Health	5,751,692	5,789,051	37,359	5,751,692	0%
410 Division Of Mental Health	115,715,410	240,696,230	37,976,363	202,719,867	75.18%
495 Department Of Environmental Management	31,820,315	32,972,962	1,152,647	31,820,315	0%
496 Office Of Environmental Adjudication	291,445	306,445	15,000	291,445	0%
497 Division Of Aging And Rehabilitative Services	149,156,003	202,921,829	32,041,356	170,880,473	14.56%
500 Division Of Family And Children	1,588,962,691	1,595,555,027	6,592,336	1,588,962,691	0%
505 Education Employment Relations Board	722,327	757,332	35,005	722,327	0%
550 Indiana School For The Blind	11,638,363	13,396,514	1,758,151	11,638,363	0%
560 Indiana School For The Deaf	19,352,400	20,310,145	957,745	19,352,400	0%
570 Indiana Veterans' Home	11,568,838	12,515,923	947,085	11,568,838	0%
580 Soldiers' And Sailors' Children's Home	11,295,832	11,877,380	581,548	11,295,832	0%
605 Public Defender	5,718,067	6,063,335	345,268	5,718,067	0%
615 Department Of Correction	139,454,966	139,744,413	289,447	139,454,966	0%
618 Miami Correctional Facility	26,751,047	36,191,978	5,714,713	30,477,265	13.92%
620 State Prison	34,059,482	34,375,082	315,600	34,059,482	0%
635 Correctional Industrial Facility	22,867,423	23,059,220	191,797	22,867,423	0%
640 Women's Prison	12,554,839	12,604,669	49,830	12,554,839	0%
645 New Castle Correctional Facility	12,252,144	15,561,958	2,457,233	13,104,725	6.95%
655 Pendleton Juvenile Correctional Facility	15,837,217	15,962,758	125,541	15,837,217	0%
660 Plainfield Juvenile Correctional Facility	14,958,128	17,205,351	2,247,223	14,958,128	0%
665 Wabash Valley Correctional Facility	41,571,184	41,682,552	111,368	41,571,184	0%
670 Indianapolis Juvenile Correctional Facility	10,048,777	10,138,072	89,295	10,048,777	0%
685 Rockville Correctional Facility For Women	14,983,459	17,283,622	2,300,163	14,983,459	0%
695 Reception And Diagnostic Center	11,249,018	11,280,538	31,520	11,249,018	0%
700 Department Of Education	2,268,807,470	2,278,958,172	10,150,702	2,268,807,470	0%
703 Commission On Proprietary Education	424,284	426,524	2,240	424,284	0%
705 Arts Commission	3,323,240	3,617,337	101,523	3,515,814	5.79%
710 Ivy Tech State College	112,195,577	112,863,601	668,024	112,195,577	0%
718 School Lunch Division	5,133,045	5,134,445	1,400	5,133,045	0%
720 Governor's Commission On Community Service/Volunteerism	281,215	326,913	45,698	281,215	0%
730 State Library	6,242,721	6,468,190	52,728	6,415,462	2.76%
735 Historical Bureau	365,179	399,020	33,841	365,179	0%
750 Indiana University	505,282,399	509,366,043	4,083,644	505,282,399	0%
770 Indiana State University	82,480,382	83,517,517	1,037,135	82,480,382	0%
775 University Of Southern Indiana	35,173,404	37,172,584	1,999,180	35,173,404	0%
780 Ball State University	127,706,166	130,774,222	3,068,026	127,706,196	0%
790 Vincennes University	33,361,930	34,307,067	945,137	33,361,930	0%
902 Indiana Licensing Agency	0	4,959,671	783,132	4,176,539
FY 2003-04 Watchdog Cuts			148,700,000

FY 2004-05 Agency Budget Cuts (Steps A, B. C and D)	FY 2003-04 Watchdog Gen. Fund	FY 2004-05 Recommended Gen. Fund	Watchdog Cuts (5)	FY 2004-05 Steps A-D Watchdog Gen. Fund	Percent Change (2)
003 House Of Representatives	12,515,226	15,327,051	2,811,825	12,515,226	0%
004 Senate	8,921,744	9,180,307	258,563	8,921,744	0%
017 Legislative Council and the Legislative Services Agency	9,258,600	9,669,000	410,400	9,258,600	0%
023 Court Of Appeals	8,241,177	8,674,191	433,014	8,241,177	0%
024 Clerk of the Supreme and Appellate Courts	891,555	894,090	2,535	891,555	0%
026 Judicial Center	2,123,530	2,250,429	126,899	2,123,530	0%
028 Tax Court	570,805	588,770	17,965	570,805	0%
038 Lieutenant Governor	2,671,330	3,080,047	408,717	2,671,330	0%
046 Attorney General	12,847,466	12,963,444	115,978	12,847,466	0%
048 Treasurer Of State	868,275	871,152	2,877	868,275	0%
050 Auditor Of State	12,903,540	13,203,540	300,000	12,903,540	0%
061 Department Of Administration	102,301,190	120,731,710	18,430,520	102,301,190	0%
070 State Personnel Department	4,204,012	4,224,390	20,378	4,204,012	0%
072 Public Employees' Retirement Fund	10,528,209	11,326,504	798,295	10,528,209	0%
074 Employee Appeals Commission	148,442	149,282	840	148,442	0%
075 State Ethics Commission	254,991	255,549	558	254,991	0%
080 State Board Of Accounts	17,977,901	18,284,502	306,601	17,977,901	0%
085 Information Technology Oversight Commission	563,403	663,403	100,000	563,403	0%
090 Department Of Revenue	52,390,840	54,467,724	2,076,884	52,390,840	0%
103 Law Enforcement Training Academy	1,343,243	1,595,111	199,868	1,395,243	3.87%
195 Indiana Department Of Gaming Research	252,630	300,000	47,370	252,630	0%
210 Insurance Department	3,352,076	3,378,116	26,040	3,352,076	0%
215 Department Of Local Government Finance	3,884,466	4,371,203	486,737	3,884,466	0%
217 Indiana Board Of Tax Review	1,256,141	1,375,108	118,967	1,256,141	0%
220 Workers' Compensation Board	1,822,529	1,823,610	1,081	1,822,529	0%
225 Department Of Labor	5,080,869	5,276,984	196,115	5,080,869	0%
245 Professional Standards Board	5,731,774	6,806,524	1,074,750	5,731,774	0%
300 Department Of Natural Resources	66,251,334	69,113,709	2,862,375	66,251,334	0%
310 White River Park Commission	1,286,699	1,336,699	50,000	1,286,699	0%
351 State Board Of Animal Health	5,751,692	5,789,051	37,359	5,751,692	0%
410 Division Of Mental Health	202,719,867	240,696,230	37,976,363	202,719,867	0%
440 Richmond State Hospital	1,005,762	1,255,362	249,600	1,005,762	0%
495 Department Of Environmental Management	31,820,315	32,972,962	766,085	32,206,877	1.21%
496 Office Of Environmental Adjudication	291,445	306,445	15,000	291,445	0%
497 Division Of Aging And Rehabilitative Services	170,880,473	202,921,829	32,041,356	170,880,473	0%
500 Division Of Family And Children	1,588,962,691	1,704,355,027	115,392,336	1,588,962,691	0%
505 Education Employment Relations Board	722,327	757,332	35,005	722,327	0%
570 Indiana Veterans' Home	11,568,838	12,736,091	1,167,253	11,568,838	0%
605 Public Defender	5,718,067	6,077,705	357,572	5,720,133	0.03%
617 Correctional Units	168,000	252,000	84,000	168,000	0%
618 Miami Correctional Facility	30,477,265	41,907,096	11,429,831	30,477,265	0%
620 State Prison	34,059,482	34,375,082	315,600	34,059,482	0%
635 Correctional Industrial Facility	22,867,423	23,059,221	191,798	22,867,423	0%
640 Women's Prison	12,554,839	12,659,269	104,430	12,554,839	0%
645 New Castle Correctional Facility	13,104,725	23,377,223	10,272,498	13,104,725	0%
655 Pendleton Juvenile Correctional Facility	15,837,217	15,962,758	125,541	15,837,217	0%
660 Plainfield Juvenile Correctional Facility	14,958,128	17,314,140	2,356,012	14,958,128	0%
665 Wabash Valley Correctional Facility	41,571,184	41,849,264	278,080	41,571,184	0%
670 Indianapolis Juvenile Correctional Facility	10,048,777	16,593,801	6,545,024	10,048,777	0%
680 Westville Correctional Facility	49,016,040	49,254,419	238,379	49,016,040	0%
685 Rockville Correctional Facility For Women	14,983,459	18,366,196	3,382,737	14,983,459	0%
690 Plainfield Correctional Facility	28,992,903	29,108,054	115,151	28,992,903	0%
695 Reception And Diagnostic Center	11,249,018	11,323,832	74,814	11,249,018	0%
703 Commission On Proprietary Education	424,284	426,524	2,240	424,284	0%
705 Arts Commission	3,515,814	3,617,337	92,223	3,525,114	0.26%
710 Ivy Tech State College	112,195,577	114,128,969	1,933,392	112,195,577	0%
718 School Lunch Division	5,133,045	5,134,445	1,400	5,133,045	0%
720 Governor's Commission On Community Service/Volunteerism	281,215	326,913	45,698	281,215	0%
730 State Library	6,415,462	6,468,190	52,728	6,415,462	0%
740 Indiana State Teachers' Retirement Fund	305,529,000	346,832,000	41,303,000	305,529,000	0%
750 Indiana University	505,282,399	509,688,327	4,405,928	505,282,399	0%
770 Indiana State University	82,480,382	83,517,662	1,037,280	82,480,382	0%
775 University Of Southern Indiana	35,173,404	37,169,833	1,996,429	35,173,404	0%
780 Ball State University	127,706,166	130,775,523	3,069,357	127,706,166	0%
790 Vincennes University	33,361,930	34,310,161	948,231	33,361,930	0%
902 Indiana Licensing Agency	4,176,539	4,959,671	783,132	4,176,539	0%
FY 2003-04 Watchdog Cuts (Steps A, B, C and D)			310,909,014
FY 2004-05 Agency Budget Cuts (Steps E and F)	FY 2004-05 Steps A-D Watchdog Gen. Fund		Watchdog Cuts (5)	FY 2004-05 Watchdog Gen. Fund	Percent Change (3)
003 House Of Representatives	12,515,226		107,630	12,407,596	(0.86%)
004 Senate	8,921,744		76,726	8,845,018	(0.86%)
015 Indiana Lobby Registration Commission	218,285		1,877	216,408	(0.86%)
017 Legislative Council And The Legislative Services Agency	9,258,600		79,623	9,178,977	(0.86%)
019 Commission On Uniform State Laws	45,400		390	45,010	(0.86%)
022 Supreme Court	73,434,081		631,533	72,802,548	(0.86%)
023 Court Of Appeals	8,241,177		70,874	8,170,303	(0.86%)
024 Clerk of the Supreme and Appellate Courts	891,555		7,667	883,888	(0.86%)
026 Judicial Center	2,123,530		18,262	2,105,268	(0.86%)
028 Tax Court	570,805		4908	565,897	(0.86%)
030 Governor's Office	2,606,467		22,415	2,584,052	(0.86%)
032 Criminal Justice Institute	5,084,564		43,727	5,040,837	(0.86%)
034 Washington Liaison Office	195,037		1677	193,360	(0.86%)
038 Lieutenant Governor	2,671,330		22,973	2,648,357	(0.86%)
039 Prosecuting Attorneys' Council	1,023,693		8,803	1,014,890	(0.86%)
040 Secretary Of State	2,297,620		19,759	2,277,861	(0.86%)
046 Attorney General	12,847,466		110,488	12,736,978	(0.86%)
048 Treasurer Of State	868,275		7,467	860,808	(0.86%)
050 Auditor Of State	12,903,540		110,970	12,792,570	(0.86%)
057 State Budget Agency	110,808,031		952,949	109,855,082	(0.86%)
061 Department Of Administration	102,301,190		879,790	101,421,400	(0.86%)
062 Commission On Public Records	1,450,004		12,470	1,437,534	(0.86%)
063 Indiana Election Commission	847,179		7,285	839,894	(0.86%)
064 Office Of The Public Access Counselor	152,213		1,309	150,904	(0.86%)
070 State Personnel Department	4,204,012		36,154	4,167,858	(0.86%)
072 Public Employees' Retirement Fund	10,528,209		90,542	10,437,667	(0.86%)
074 Employee Appeals Commission	148,442		1,276	147,166	(0.86%)
075 State Ethics Commission	254,991		2,192	252,799	(0.86%)
080 State Board Of Accounts	17,977,901		154,609	17,823,292	(0.86%)
085 Information Technology Oversight Commission	563,403		4,845	558,558	(0.86%)
090 Department Of Revenue	52,390,840		450,561	51,940,279	(0.86%)
100 Indiana State Police	26,699,976		229,619	26,470,357	(0.86%)
103 Law Enforcement Training Academy	1,395,243		11,999	1,383,244	(0.86%)
110 Adjutant General	11,779,237		101,301	11,677,936	(0.86%)
160 Department Of Veterans' Affairs	947,257		8,146	939,111	(0.86%)
195 Indiana Department Of Gaming Research	252,630		2,172	250,458	(0.86%)
200 Utility Regulatory Commission	5,000		43	4,957	(0.86%)
210 Insurance Department	3,352,076		28,827	3,323,249	(0.86%)
215 Department Of Local Government Finance	3,884,466		33,406	3,851,060	(0.86%)
217 Indiana Board Of Tax Review	1,256,141		10,802	1,245,339	(0.86%)
220 Workers' Compensation Board	1,822,529		15,673	1,806,856	(0.86%)
225 Department Of Labor	5,080,869		43,695	5,037,174	(0.86%)
245 Professional Standards Board	5,731,774		49,293	5,682,481	(0.86%)
258 Civil Rights Commission	2,319,158		19,944	2,299,214	(0.86%)
260 Department Of Commerce	62,778,731		539,897	62,238,834	(0.86%)
300 Department Of Natural Resources	66,251,334		569,761	65,681,573	(0.86%)
310 White River Park Commission	1,286,699		11,065	1,275,634	(0.86%)
315 World War Memorial Commission	1,600,376		13,763	1,586,613	(0.86%)
325 Maumee River Basin Commission	37,500		322	37,178	(0.86%)
330 St. Joseph River Basin Commission	70,029		602	69,427	(0.86%)
351 State Board Of Animal Health	5,751,692		49,464	5,702,228	(0.86%)
385 Emergency Management Agency	1,952,047		16,787	1,935,260	(0.86%)
400 State Department Of Health	46,013,767		395,718	45,618,049	(0.86%)
405 Family And Social Services Administration	22,173,567		190,692	21,982,875	(0.86%)
410 Division Of Mental Health	202,719,867		1,743,390	200,976,477	(0.86%)
415 Evansville Psychiatric Children's Center	47,816		411	47,405	(0.86%)
425 Evansville State Hospital	378,378		3,254	375,124	(0.86%)
430 Madison State Hospital	1,010,260		8,688	1,001,572	(0.86%)
435 Logansport State Hospital	2,813,253		24,193	2,789,060	(0.86%)
440 Richmond State Hospital	1,005,762		8,649	997,113	(0.86%)
450 Larue Carter Memorial Hospital	1,492,067		12,831	1,479,236	(0.86%)
465 Fort Wayne State Developmental Center	2,212,402		19,026	2,193,376	(0.86%)
470 Muscatatuck State Developmental Center	1,128,724		9,707	1,119,017	(0.86%)
480 Silvercrest Children's Development Center	7,515,240		64,631	7,450,609	(0.86%)
495 Department Of Environmental Management	32,206,877		276,979	31,929,898	(0.86%)
496 Office Of Environmental Adjudication	291,445		2,506	288,939	(0.86%)
497 Division Of Aging And Rehabilitative Services	170,880,473		1,469,572	169,410,901	(0.86%)
500 Division Of Family And Children	1,588,962,691		13,100,773	1,575,861,918	(0.82%)
505 Education Employment Relations Board	722,327		6,212	716,115	(0.86%)
510 Department Of Workforce Development	3,805,060		32,723	3,772,337	(0.86%)
550 Indiana School For The Blind	10,646,514		91,560	10,554,954	(0.86%)
560 Indiana School For The Deaf	17,500,990		150,508	17,350,482	(0.86%)
570 Indiana Veterans' Home	11,568,838		99,492	11,469,346	(0.86%)
580 Soldiers' And Sailors' Children's Home	10,217,470		87,870	10,129,600	(0.86%)
605 Public Defender	5,720,133		49,193	5,670,940	(0.86%)
607 Henryville Correctional Facility	2,204,823		18,961	2,185,862	(0.86%)
610 Public Defender Council	1,068,554		9,189	1,059,365	(0.86%)
615 Department Of Correction	134,501,258		1,156,710	133,344,548	(0.86%)
616 North Central Juvenile Facility	8,670,180		74,563	8,595,617	(0.86%)
617 Correctional Units	168,000		1,444	166,556	(0.86%)
618 Miami Correctional Facility	30,477,265		262,104	30,215,161	(0.86%)
619 Logansport Juvenile Intake/Diagnosis Facility	3,197,813		27,501	3,170,312	(0.86%)
620 State Prison	34,059,482		292,911	33,766,571	(0.86%)
630 Pendleton Correctional Facility	32,975,257		283,587	32,691,670	(0.86%)
635 Correctional Industrial Facility	22,867,423		196,659	22,670,764	(0.86%)
640 Women's Prison	12,554,839		107,971	12,446,868	(0.86%)
645 New Castle Correctional Facility	13,104,725		112,700	12,992,025	(0.86%)
650 Putnamville Correctional Facility	32,098,219		276,044	31,822,175	(0.86%)
655 Pendleton Juvenile Correctional Facility	15,837,217		136,200	15,701,017	(0.86%)
660 Plainfield Juvenile Correctional Facility	14,958,128		128,639	14,829,489	(0.86%)
665 Wabash Valley Correctional Facility	41,571,184		357,512	41,213,672	(0.86%)
667 Madison Correctional Facility	3,364,860		28,937	3,335,923	(0.86%)
670 Indianapolis Juvenile Correctional Facility	10,048,777		86,419	9,962,358	(0.86%)
675 Branchville Correctional Facility	19,447,886		167,251	19,280,635	(0.86%)
680 Westville Correctional Facility	49,016,040		421,537	48,594,503	(0.86%)
682 Westville Maximum Control Facility	5,808,646		49,954	5,758,692	(0.86%)
685 Rockville Correctional Facility For Women	14,983,459		128,857	14,854,602	(0.86%)
690 Plainfield Correctional Facility	28,992,903		249,338	28,743,565	(0.86%)
695 Reception And Diagnostic Center	11,249,018		96,741	11,152,277	(0.86%)
700 Department Of Education	2,244,814,625		19,305,405	2,225,509,220	(0.86%)
703 Commission On Proprietary Education	424,284		3,648	420,636	(0.86%)
705 Arts Commission	3,525,114		30,315	3,494,799	(0.86%)
710 Ivy Tech State College	112,195,577		964,881	111,230,696	(0.86%)
715 State Student Assistance Commission	147,939,279		1,272,277	146,667,002	(0.86%)
718 School Lunch Division	5,133,045		44,144	5,088,901	(0.86%)
719 Commission For Higher Education	2,344,627		20,163	2,324,464	(0.86%)
720 Governor's Commission On Community Service/Volunteerism	281,215		2,418	278,797	(0.86%)
730 State Library	6,415,462		55,172	6,360,290	(0.86%)
735 Historical Bureau	399,020		3,431	395,589	(0.86%)
740 Indiana State Teachers' Retirement Fund	305,529,000		2,627,549	302,901,451	(0.86%)
750 Indiana University	505,282,399		4,345,428	500,936,971	(0.86%)
755 Medical Education Board	2,249,792		19,348	2,230,444	(0.86%)
760 Purdue University	341,505,160		2,936,944	338,568,216	(0.86%)
770 Indiana State University	82,480,382		709,331	81,771,051	(0.86%)
775 University Of Southern Indiana	35,173,404		302,491	34,870,913	(0.86%)
780 Ball State University	127,706,166		1,098,273	126,607,893	(0.86%)
790 Vincennes University	33,361,930		286,912	33,075,018	(0.86%)
800 Department Of Transportation	965,000		8,299	956,701	(0.86%)
902 Indiana Licensing Agency	4,176,539		35,918	4,140,621	(0.86%)
FY 2003-04 Watchdog Cuts (Steps E and F)			62,290,986
FY 2003-04 Watchdog Cuts (Total all Steps)			373,200,000

(1) Percentage increase of FY 2003-04 Watchdog General Fund over FY 2002-03 Estimated General Fund.

(2) Percentage increase of FY 2004-05 Watchdog General Fund (Steps A-D) over FY 2003-04 Watchdog General Fund.

(3) Percentage (decrease) of FY 2004-05 Watchdog General Fund under FY 2004-05 Watchdog General Fund (Steps A-D).

(4) FY 2003-04 Budget Cut Steps:
A. Identify those agencies whose Recommended Total Expenditures exceed their FY 2002-03 Estimated Total Expenditures.
B. Identify Step A agencies whose Recommended General Fund Expenditures exceed their FY 2002-03 Estimated General Fund Expenditures.
C. Cut the Recommended General Fund Expenditures of each agency identified in Step B by 15.79%.
D. Limit cuts in Step C to where FY 2003-04 Watchdog General Fund Expenditures do not fall below the FY 2002-03 Estimated General Fund Expenditures.
E. Limit cuts in Step D to where FY 2003-04 Watchdog Total Expenditures do not fall below the FY 2002-03 Estimated Total Expenditures.
F. 410 Division Of Mental Health cuts were reduced $29,571 by choice.

(5) FY 2004-05 Budget Cut Steps:
A. Identify those agencies whose Recommended Total Expenditures exceed their FY 2003-04 Watchdog Total Expenditures.
B. Identify Step A agencies whose Recommended General Fund Expenditures exceed their FY 2003-04 Watchdog General Fund Expenditures.
C. Cut the Recommended General Fund Expenditures of each agency identified in Step B so they do not exceed FY 2003-04 Watchdog General Fund Expenditures.
D. Limit cuts in Step C to where FY 2004-05 Watchdog Total Expenditures do not fall below the FY 2003-04 Watchdog Total Expenditures.
E. Cut each agency's FY 2004-05 Watchdog General Fund Expenditures after Step D by 0.86%.
F. 500 Division Of Family And Children cuts were reduced $564,306 by choice.

SOURCE: State of Indiana Budget Report for the Biennium July 1, 2003 to June 30, 2005
( available online at http://www.in.gov/sba/budget/2003_budget/as_submitted/index.html )

Notes:
GF = General Fund Expenditures
FY = Fiscal Year (e.g. FY 2004 = July 1, 2003 to June 30, 2004)

The effects of the TFB cuts on Total Agency Expenditures for the 2003-05 biennium are summarized in Table 4 below.

Table 4
Effects Of Watchdog Cuts On Total Agency Expenditures
(compiled March 6, 2003)

	Estimated	Recommended	Watchdog	Watchdog	Percent
Agencies Cut In FY 2003-04	FY 2002-03	FY 2003-04	Cuts	FY 2003-04	Change*
004 Senate	8,921,744	9,180,307	258,563	8,921,744	0%
017 Legislative Council and the Legislative Services Agency	9,258,600	9,383,000	124,400	9,258,600	0%
023 Court Of Appeals	8,241,177	8,936,464	695,287	8,241,177	0%
024 Clerk of the Supreme and Appellate Courts	891,555	894,090	2,535	891,555	0%
026 Judicial Center	2,123,530	2,226,780	103,250	2,123,530	0%
028 Tax Court	570,805	587,025	16,220	570,805	0%
038 Lieutenant Governor	2,968,360	3,377,077	408,717	2,968,360	0%
046 Attorney General	19,598,234	19,714,212	115,978	19,598,234	0%
048 Treasurer Of State	868,275	871,152	2,877	868,275	0%
061 Department Of Administration	99,850,171	124,375,439	19,182,232	105,193,207	5.35%
063 Indiana Election Commission	1,073,224	1,156,179	82,955	1,073,224	0%
070 State Personnel Department	4,204,012	4,224,390	20,378	4,204,012	0%
072 Public Employees' Retirement Fund	14,528,218	14,743,580	195,202	14,548,378	0.13%
074 Employee Appeals Commission	148,442	149,282	840	148,442	0%
075 State Ethics Commission	254,991	255,549	558	254,991	0%
080 State Board Of Accounts	18,274,221	18,542,782	266,601	18,276,181	0.01%
085 Information Technology Oversight Commission	563,403	663,403	100,000	563,403	0%
090 Department Of Revenue	1,963,874,346	2,321,533,449	2,076,884	2,319,456,565	18.10%
103 Law Enforcement Training Academy	4,376,372	4,732,872	251,868	4,481,004	2.39%
195 Indiana Department Of Gaming Research	150,000	300,000	47,370	252,630	68.42%
210 Insurance Department	8,217,487	8,243,527	26,040	8,217,487	0%
215 Department Of Local Government Finance	3,884,466	4,371,203	486,737	3,884,466	0%
217 Indiana Board Of Tax Review	1,256,141	1,375,108	118,967	1,256,141	0%
220 Workers' Compensation Board	4,409,082	4,410,163	1,081	4,409,082	0%
225 Department Of Labor	6,264,489	6,462,792	196,115	6,266,677	0.03%
245 Professional Standards Board	3,574,026	7,250,424	1,074,750	6,175,674	72.79%
300 Department Of Natural Resources	147,726,342	151,039,070	2,769,957	148,269,113	0.36%
310 White River Park Commission	1,286,699	1,336,699	50,000	1,286,699	0%
315 World War Memorial Commission	2,086,965	4,354,879	687,635	3,667,244	75.72%
351 State Board Of Animal Health	7,715,195	7,756,829	37,359	7,719,470	0.05%
410 Division Of Mental Health	209,525,950	350,432,382	37,976,363	312,456,019	49.12%
495 Department Of Environmental Management	157,380,193	161,398,850	1,152,647	160,246,203	1.82%
496 Office Of Environmental Adjudication	291,445	306,445	15,000	291,445	0%
497 Division Of Aging And Rehabilitative Services	299,680,870	363,651,009	32,041,356	331,609,653	10.65%
500 Division Of Family And Children	5,131,311,498	5,202,430,005	6,592,336	5,195,837,669	1.25%
505 Education Employment Relations Board	722,327	757,332	35,005	722,327	0%
550 Indiana School For The Blind	11,759,903	13,518,542	1,758,151	11,760,391	0.00%
560 Indiana School For The Deaf	19,559,766	20,517,511	957,745	19,559,766	0%
570 Indiana Veterans' Home	22,766,626	23,926,740	947,085	22,979,655	0.93%
580 Soldiers' And Sailors' Children's Home	11,535,872	12,572,380	581,548	11,990,832	3.94%
605 Public Defender	5,893,160	6,251,164	345,268	5,905,896	0.21%
615 Department Of Correction	142,001,070	142,724,799	289,447	142,435,352	0.30%
618 Miami Correctional Facility	26,751,047	36,191,978	5,714,713	30,477,265	13.92%
620 State Prison	35,360,641	36,879,379	315,600	36,563,779	3.40%
635 Correctional Industrial Facility	23,171,794	23,588,070	191,797	23,396,273	0.96%
640 Women's Prison	12,556,444	14,292,169	49,830	14,242,339	13.42%
645 New Castle Correctional Facility	12,252,144	15,561,958	2,457,233	13,104,725	6.95%
655 Pendleton Jevenile Correctional Facility	15,837,217	15,962,758	125,541	15,837,217	0%
660 Plainfield Juvenile Correctional Facility	15,155,490	17,695,245	2,247,223	15,448,022	1.93%
665 Wabash Valley Correctional Facility	41,815,807	43,268,509	111,368	43,157,141	3.20%
670 Indianapolis Juvenile Correctional Facility	10,263,697	10,910,322	89,295	10,821,027	5.43%
685 Rockville Correctional Facility For Women	14,983,459	17,283,622	2,300,163	14,983,459	0%
695 Reception And Diagnostic Center	11,271,327	11,687,678	31,520	11,656,158	3.41%
700 Department Of Education	4,282,019,124	4,313,361,490	10,150,702	4,303,210,788	0.49%
703 Commission On Proprietary Education	508,445	511,245	2,240	509,005	0.11%
705 Arts Commission	4,134,014	4,235,537	101,523	4,134,014	0%
710 Ivy Tech State College	112,195,577	112,863,601	668,024	112,195,577	0%
718 School Lunch Division	162,628,663	162,638,463	1,400	162,637,063	0.00%
720 Governor's Commission On Community Service/Volunteerism	5,116,010	5,216,699	45,698	5,171,001	1.07%
730 State Library	9,954,839	10,007,567	52,728	9,954,839	0%
735 Historical Bureau	388,074	421,915	33,841	388,074	0%
750 Indiana University	507,959,295	512,042,939	4,083,644	507,959,295	0%
770 Indiana State University	82,480,382	83,517,517	1,037,135	82,480,382	0%
775 University Of Southern Indiana	36,186,513	38,185,693	1,999,180	36,186,513	0%
780 Ball State University	128,702,080	131,770,106	3,068,026	128,702,080	0%
790 Vincennes University	33,361,930	34,307,067	945,137	33,361,930	0%
902 Indiana Licensing Agency	0	4,959,671	783,132	4,176,539
FY 2003-04 Watchdog Cuts			148,700,000

	Watchdog	Recommended	Watchdog	Watchdog	Percent
Agencies Cut In FY 2004-05	FY 2003-04	FY 2004-05	Cuts	FY 2004-05	Change**
003 House Of Representatives	12,515,226	15,327,051	2,919,455	12,407,596	(0.86%)
004 Senate	8,921,744	9,180,307	335,289	8,845,018	(0.86%)
015 Indiana Lobby Registration Commission	218,285	218,285	1,877	216,408	(0.86%)
017 Legislative Council And The Legislative Services Agency	9,258,600	9,669,000	490,023	9,178,977	(0.86%)
019 Commission On Uniform State Laws	45,400	45,400	390	45,010	(0.86%)
022 Supreme Court	83,246,380	83,992,346	631,533	83,360,813	0.13%
023 Court Of Appeals	8,241,177	8,674,191	503,888	8,170,303	(0.86%)
024 Clerk of the Supreme and Appellate Courts	891,555	894,090	10,202	883,888	(0.86%)
026 Judicial Center	2,123,530	2,250,429	145,161	2,105,268	(0.86%)
028 Tax Court	570,805	588,770	22,873	565,897	(0.86%)
030 Governor's Office	2,606,467	2,606,467	22,415	2,584,052	(0.86%)
032 Criminal Justice Institute	36,602,723	36,602,723	43,727	36,558,996	(0.11%)
034 Washington Liaison Office	195,037	195,037	1,677	193,360	(0.86%)
038 Lieutenant Governor	2,968,360	3,377,077	431,690	2,945,387	(0.77%)
039 Prosecuting Attorneys' Council	1,127,129	1,127,129	8,803	1,118,326	(0.78%)
040 Secretary Of State	2,645,164	2,645,164	19,759	2,625,405	(0.74%)
046 Attorney General	19,598,234	19,714,212	226,466	19,487,746	(0.56%)
048 Treasurer Of State	868,275	871,152	10,344	860,808	(0.86%)
050 Auditor Of State	866,542,738	873,500,032	410,970	873,089,062	0.75%
057 State Budget Agency	195,926,324	192,026,325	952,949	191,073,376	(2.47%)
061 Department Of Administration	105,193,207	123,623,727	19,310,310	104,313,417	(0.83%)
062 Commission On Public Records	1,643,614	1,643,614	12,470	1,631,144	(0.75%)
063 Indiana Election Commission	1,073,224	892,179	7,285	884,894	(17.54%)
064 Office Of The Public Access Counselor	152,213	152,213	1,309	150,904	(0.86%)
070 State Personnel Department	4,204,012	4,224,390	56,532	4,167,858	(0.86%)
072 Public Employees' Retirement Fund	14,548,378	15,346,673	888,837	14,457,836	(0.62%)
074 Employee Appeals Commission	148,442	149,282	2,116	147,166	(0.86%)
075 State Ethics Commission	254,991	255,549	2,750	252,799	(0.86%)
080 State Board Of Accounts	18,276,181	18,582,782	461,210	18,121,572	(0.84%)
085 Information Technology Oversight Commission	563,403	663,403	104,845	558,558	(0.86%)
090 Department Of Revenue	2,319,456,565	2,431,978,654	2,527,445	2,429,451,209	4.74%
100 Indiana State Police	138,935,853	138,597,403	229,619	138,367,784	(0.40%)
103 Law Enforcement Training Academy	4,481,004	4,680,872	211,867	4,469,005	(0.26%)
110 Adjutant General	16,515,176	15,987,649	101,301	15,886,348	(3.80%)
160 Department Of Veterans' Affairs	947,257	947,257	8,146	939,111	(0.86%)
195 Indiana Department Of Gaming Research	252,630	300,000	49,542	250,458	(0.86%)
200 Utility Regulatory Commission	6,721,604	6,721,604	43	6,721,561	(0.00%)
210 Insurance Department	8,217,487	8,243,527	54,867	8,188,660	(0.35%)
215 Department Of Local Government Finance	3,884,466	4,371,203	520,143	3,851,060	(0.86%)
217 Indiana Board Of Tax Review	1,256,141	1,375,108	129,769	1,245,339	(0.86%)
220 Workers' Compensation Board	4,409,082	4,410,163	16,754	4,393,409	(0.35%)
225 Department Of Labor	6,266,677	6,462,792	239,810	6,222,982	(0.69%)
245 Professional Standards Board	6,175,674	7,250,424	1,124,043	6,126,381	(0.79%)
258 Civil Rights Commission	2,360,708	2,360,708	19,944	2,340,764	(0.84%)
260 Department Of Commerce	103,906,359	103,906,358	539,897	103,366,461	(0.51%)
300 Department Of Natural Resources	148,269,113	151,255,609	3,432,136	147,823,473	(0.30%)
310 White River Park Commission	1,286,699	1,336,699	61,065	1,275,634	(0.86%)
315 World War Memorial Commission	3,667,244	1,600,376	13,763	1,586,613	(56.73%)
325 Maumee River Basin Commission	37,500	37,500	322	37,178	(0.86%)
330 St. Joseph River Basin Commission	70,029	70,029	602	69,427	(0.86%)
351 State Board Of Animal Health	7,719,470	7,756,829	86,823	7,670,006	(0.64%)
385 Emergency Management Agency	8,056,330	8,056,330	16,787	8,039,543	(0.20%)
400 State Department Of Health	229,415,500	229,415,500	395,718	229,019,782	(0.17%)
405 Family And Social Services Administration	28,266,639	28,266,639	190,692	28,075,947	(0.67%)
410 Division Of Mental Health	312,456,019	350,432,382	39,719,753	310,712,629	(0.55%)
415 Evansville Psychiatric Children's Center	47,816	47,816	411	47,405	(0.86%)
425 Evansville State Hospital	2,007,828	378,378	3,254	375,124	(81.31%)
430 Madison State Hospital	1,010,259	1,010,260	8,688	1,001,572	(0.86%)
435 Logansport State Hospital	2,847,252	2,813,253	24,193	2,789,060	(2.04%)
440 Richmond State Hospital	1,005,762	1,255,362	258,249	997,113	(0.86%)
450 Larue Carter Memorial Hospital	1,492,067	1,492,067	12,831	1,479,236	(0.86%)
465 Fort Wayne State Developmental Center	2,212,401	2,212,402	19,026	2,193,376	(0.86%)
470 Muscatatuck State Developmental Center	1,128,725	1,128,724	9,707	1,119,017	(0.86%)
480 Silvercrest Children's Development Center	7,550,240	7,550,240	64,631	7,485,609	(0.86%)
495 Department Of Environmental Management	160,246,203	161,012,288	1,043,064	159,969,224	(0.17%)
496 Office Of Environmental Adjudication	291,445	306,445	17,506	288,939	(0.86%)
497 Division Of Aging And Rehabilitative Services	331,609,653	363,651,009	33,510,928	330,140,081	(0.44%)
500 Division Of Family And Children	5,195,837,669	5,598,696,105	128,493,109	5,470,202,996	5.28%
505 Education Employment Relations Board	722,327	757,332	41,217	716,115	(0.86%)
510 Department Of Workforce Development	1,091,065,841	1,091,065,841	32,723	1,091,033,118	(0.00%)
550 Indiana School For The Blind	11,760,391	10,768,542	91,560	10,676,982	(9.21%)
560 Indiana School For The Deaf	19,559,766	17,708,356	150,508	17,557,848	(10.23%)
570 Indiana Veterans' Home	22,979,655	24,291,909	1,266,745	23,025,164	0.19%
580 Soldiers' And Sailors' Children's Home	11,990,832	10,912,470	87,870	10,824,600	(9.72%)
605 Public Defender	5,905,896	6,263,468	406,765	5,856,703	(0.83%)
607 Henryville Correctional Facility	2,204,823	2,204,823	18,961	2,185,862	(0.86%)
610 Public Defender Council	1,344,054	1,344,054	9,189	1,334,865	(0.68%)
615 Department Of Correction	142,435,352	137,481,644	1,156,710	136,324,934	(4.28%)
616 North Central Juvenile Facility	8,670,180	8,670,180	74,563	8,595,617	(0.86%)
617 Correctional Units	5,431,467	5,515,468	85,444	5,430,024	(0.02%)
618 Miami Correctional Facility	30,477,265	41,907,096	11,691,935	30,215,161	(0.86%)
619 Logansport Juvenile Intake/Diagnosis Facility	3,197,813	3,197,813	27,501	3,170,312	(0.86%)
620 State Prison	36,563,779	36,879,380	608,511	36,270,869	(0.80%)
630 Pendleton Correctional Facility	34,330,309	34,330,308	283,587	34,046,721	(0.82%)
635 Correctional Industrial Facility	23,396,273	23,588,071	388,457	23,199,614	(0.84%)
640 Women's Prison	14,242,339	14,346,769	212,401	14,134,368	(0.75%)
645 New Castle Correctional Facility	13,104,725	23,377,223	10,385,198	12,992,025	(0.86%)
650 Putnamville Correctional Facility	33,046,333	33,046,334	276,044	32,770,290	(0.83%)
655 Pendleton Jevenile Correctional Facility	15,837,217	15,962,758	261,741	15,701,017	(0.86%)
660 Plainfield Juvenile Correctional Facility	15,448,022	17,804,034	2,484,651	15,319,383	(0.83%)
665 Wabash Valley Correctional Facility	43,157,141	43,435,222	635,592	42,799,630	(0.82%)
667 Madison Correctional Facility	3,364,860	3,364,860	28,937	3,335,923	(0.86%)
670 Indianapolis Juvenile Correctional Facility	10,821,027	17,366,051	6,631,443	10,734,608	(0.79%)
675 Branchville Correctional Facility	19,714,185	19,645,211	167,251	19,477,960	(1.19%)
680 Westville Correctional Facility	50,455,222	50,693,602	659,916	50,033,686	(0.83%)
682 Westville Maximum Control Facility	5,808,646	5,808,646	49,954	5,758,692	(0.86%)
685 Rockville Correctional Facility For Women	14,983,459	18,366,196	3,511,594	14,854,602	(0.86%)
690 Plainfield Correctional Facility	30,153,802	30,268,955	364,489	29,904,466	(0.82%)
695 Reception And Diagnostic Center	11,656,158	11,730,972	171,555	11,559,417	(0.82%)
700 Department Of Education	4,303,210,788	4,273,309,339	19,305,405	4,254,003,934	(1.14%)
703 Commission On Proprietary Education	509,005	511,245	5,888	505,357	(0.71%)
705 Arts Commission	4,134,014	4,226,237	122,538	4,103,699	(0.73%)
710 Ivy Tech State College	112,195,577	114,128,969	2,898,273	111,230,696	(0.86%)
715 State Student Assistance Commission	153,388,041	150,013,845	1,272,277	148,741,568	(3.02%)
718 School Lunch Division	162,637,063	162,638,463	45,544	162,592,919	(0.02%)
719 Commission For Higher Education	3,202,771	3,202,771	20,163	3,182,608	(0.62%)
720 Governor's Commission On Community Service/Volunteerism	5,171,001	5,216,699	48,116	5,168,583	(0.04%)
730 State Library	9,954,839	10,007,567	107,900	9,899,667	(0.55%)
735 Historical Bureau	388,074	421,915	3,431	418,484	7.83%
740 Indiana State Teachers' Retirement Fund	307,899,364	349,202,364	43,930,549	305,271,815	(0.85%)
750 Indiana University	507,959,295	512,365,223	8,751,356	503,613,867	(0.85%)
755 Medical Education Board	2,249,792	2,249,792	19,348	2,230,444	(0.86%)
760 Purdue University	351,475,005	346,015,506	2,936,944	343,078,562	(2.38%)
770 Indiana State University	82,480,382	83,517,662	1,746,611	81,771,051	(0.86%)
775 University Of Southern Indiana	36,186,513	38,182,942	2,298,920	35,884,022	(0.83%)
780 Ball State University	128,702,080	131,771,407	4,167,630	127,603,777	(0.85%)
790 Vincennes University	33,361,930	34,310,161	1,235,143	33,075,018	(0.86%)
800 Department Of Transportation	1,494,220,216	1,502,097,913	8,299	1,502,089,614	0.52%
902 Indiana Licensing Agency	4,176,539	4,959,671	819,050	4,140,621	(0.86%)
FY 2004-05 Watchdog Cuts			373,200,000

* Percentage increase of Watchdog FY 2003-04 from Estimated FY 2002-03.
** Percentage increase (decrease) of Watchdog FY 2004-05 from Watchdog FY 2003-04.

Note: Agencies with Watchdog FY 2003-04 appropriations below Estimated FY 2002-03 are funded at the Governor's Recommended level.

Source of Recommended Total Agency Expenditures:
State of Indiana Budget Report for the Biennium July 1, 2003 to June 30, 2005
( available online at http://www.in.gov/sba/budget/2003_budget/as_submitted/index.html )

The TFB cuts of $521.9 million for the 2003-05 biennium result in a budget that is only 2.28 percent less than the budgeted appropriations of $22.8754 billion recommended in the GB. The TFB budgeted appropriations in FY 2003-4 are 1.60 percent more than the GB estimated FY 2002-03 budgeted appropriations plus adjustments and spending increases. The FY 2004-05 TFB budgeted appropriations increase 0.70 percent over FY 2003-04, and are less than the forecasted revenue for the first time since 1997 and only the third time in the last fourteen years.

Unless recommended by the GB, the TFB cuts for FY 2003-04 leave no agency below its estimated FY 2002-03 total funding level. For FY 2004-05, the TFB cuts no agency more than 0.86% below its estimated FY 2002-03 total funding level (unless such cuts are recommended by the GB). The fact that the TFB cuts are not excessive is further emphasized when one considers that agency funding has increased to the point where total per capita state expenditures increased 2.03 times more than the rate of inflation from 1997 to 2002.

The five agencies listed next account for almost 70% of the total TFB cuts during the 2003-05 biennium.

Division Of Family And Children cuts are $135,085,445 (1.25% less than recommended by the GB with a 1.25% total increase in FY 2003-04 and a 5.28% total increase in FY 2004-05)
Division Of Mental Health cuts are $77,696,116 (11.08% less than recommended by the GB with a 49.12% total increase in FY 2003-04 and a 0.55% total decrease in FY 2004-05)
Division Of Aging And Rehabilitative Services cuts are $65,552,284 (9.01% less than recommended by the GB with a 11.65% total increase in FY 2003-04 and a 0.44% total decrease in FY 2004-05)
Indiana State Teachers' Retirement Fund cuts are $43,930,549 (6.68% less than recommended by the GB with a 35.09% total decrease in FY 2003-04 and a 0.85% total decrease in FY 2004-05)
Department Of Administration cuts are $38,492,542 (15.52% less than recommended by the GB with a 5.35% total increase in FY 2003-04 and a 0.83% total decrease in FY 2004-05)

TOBACCO SETTLEMENT FUNDS USE: The TFB does not securitize future tobacco settlement proceeds and does not take money from the Tobacco Settlement Trust Fund. Every tobacco settlement dollar is needed for current and future Medicaid needs.

By not unwisely using tobacco settlement funds as recommended in the GB, $200 million for K-12 education and $35 million to make up an expected shortfall in the State Student Assistance Commission will not be available the next biennium. If these short-term funding needs cannot be provided from General Fund revenues, then these spending initiatives should be foregone. Because of the inability to provide these funds, the TFB offsets with additional General Fund expenditures the following payment delays in FY 2002-03: $18.2 million Tuition Support Distribution, $2.9 million Higher Education Allotment.

INDIANA GROWTH FUND: A new Indiana Growth Fund, with revenue coming from the General Fund, is included in the TFB to implement the good parts of the Governor’s Energize Indiana economic development plan. Spending from the Indiana Growth Fund should be distributed as follows:

$216 million to the 21st Century Fund,

$144 million to a Development Finance Authority,

$135 million for a Growth Scholars Program,

$75 million for University Capital Projects Debt Service,

$42 million for Rural Development,

and $40 million to Technology Centers.

Table 5 below contains the annual breakdown of expenditures from the Indiana Growth Fund.

Table 5
*Indiana Growth Fund Spending**
$507 Million Total (July 1, 2003 to July 1, 2113)
(compiled April 25, 2003)
(amounts expressed in millions of dollars)

	FISCAL YEARS (ending June 30)
SPENDING AREAS	04	05	06	07	08	09	10	11	12	13	TOTAL

21st Century Fund (1)	28.1	25.1	21.8	18.8	18.8	18.8	18.8	18.8	18.8	18.8	206.6
Development Finance Authority (2)	3.1	6.2	9.4	12.5	18.7	18.7	18.7	18.7	18.7	18.7	143.4
Technology Centers (3)	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	40.0
Rural Development (4) (5) (6)	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	42.0
University Capital Projects Debt Service (7)	11.3	11.2	11.3	11.2	5.0	5.0	5.0	5.0	5.0	5.0	75.0

GRAND TOTAL	50.7	50.7	50.7	50.7	50.7	50.7	50.7	50.7	50.7	50.7	507.0

* Revenue provided by the General Fund.

Source: December 4, 2002, Energize Indiana economic development plan information.
( available online at http://www.in.gov/serv/presscal?PF=gov&Clist=4&Elist=62383 )

Notes:
(1) Makes grants to companies and universities .
(2) Leverage private-sector expertise and investment to bring new technologies to market.
(3) Provide funds to communities that use tax-increment financing or local option income tax revenues to build technical centers.
(4) More than double the size of the Value-Added Grant Program ($600,000 per year).
(5) Create the Rural Development Administration ($2.4 million per year).
(6) Fund the Indiana Rural Development Council and regional rural councils ($1.2 million per year).
(7) Service the debt incurred by selling $232 million in bonds to construct university research and lab facilities.

The other good parts of the Governor’s Energize Indiana economic development plan implemented by the TFB include the following: permanently set the tax credit for research and development at 10 percent; reduce the 30 percent floor on the business personal property tax; authorize a referendum on amending the state constitution to eliminate the requirement that inventory be taxed; target Skills 2016 training funds to workers in the four targeted industry sectors (advanced manufacturing, life sciences, information technology, high-tech distribution); use the federal economic stimulus package to recruit and assess workers, extend unemployment benefits, and modernize the state's unemployment insurance system; use $100 million over the next decade from the Public Employees Retirement Fund and the Teachers Retirement Fund to invest in venture capital, real estate, and buyouts in the four targeted industry sectors; use $100 million from debt issued by the Indiana Port Commission to help companies in the targeted industry sectors to create high-wage, high-skill jobs and to build infrastructure to accommodate them.

MANUFACTURING INVENTORY TAX CREDIT: Beginning with property taxes paid in 2004, the TFB transfers resources from the General Fund to the Property Tax Replacement Fund to provide a property tax replacement credit for manufacturing inventory. A 100% business inventory assessed value tax credit, beginning with property taxes paid in 2007, will be pursued during the 2004 General Assembly session. These inventory tax credits will prevent onerous inventory tax shifts to homeowners. Implementing inventory tax credits is a suitable tradeoff for correcting homestead credit overpayments that will result in property tax increases of $37.0 million in FY 2002-03, $111.4 million in FY 2003-04, and $132.1 million in FY 2004-05. The Inventory Tax Credit Program includes a model manufacturing inventory tax credit bill and other explanatory information.

LOCAL REVENUE SHARING: The TFB reinstates local revenue sharing for non-gaming counties ($66 million in FY 2003-04 and $33 million in FY 2004-05).

PROPERTY TAX REPLACEMENT CREDIT PAYMENTS: The TFB eliminates the property tax replacement credit payment delays in FY 2003-04 ($14.5 million) and FY 2004-05 ($11.1 million).

ADMINISTRATIVE FEES: The TFB eliminates the new tobacco merchant location fee proposed by the GB. Also eliminated are increases in fees for the Alcohol and Tobacco Commission (catering fee, temporary permit fee, server permit fee) and the Department of Revenue (retail merchant’s certificate).

DEDICATED FUND TRANSFERS: The TFB eliminates transfers to the General Fund from the following dedicated funds in FY 2004-05: Abandoned Property Fund ($25 million), Administrative Services Revolving Fund ($2.5 million), Prison Industries Revolving Fund ($2.4 million).

RAINY DAY FUND USE: The TFB transfers $30.6 million from the Rainy Day Fund to the General Fund in FY 2002-03 (instead of $46.5 million). The TFB also transfers $229.8 million from the Rainy Day Fund to the General Fund in FY 2003-04 (instead of $213.9 million). Both the TFB and the GB leave $53.3 million in the Rainy Day fund at the conclusion of FY 2004-05.

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