The Indiana Statehouse is reflected in the ISTA building in downtown Indianapolis on Thursday, July 3, 2025. (Leslie Bonilla Muñiz/Indiana Capital Chronicle)
Indiana’s state agencies are slowly earning approval for their plans to save money after being hit with effective 10% spending cuts amid a tough budget cycle.
A grim May revenue forecast prompted lawmakers to cut most agency appropriations by 5% in the latest biennial budget — and authorize the State Budget Agency to withhold another 5%.
Agencies were forced to describe how they’ll meet that target in “strategic spending reduction plans” due at the end of June. The first batch of plans got the green light last week.
The Indiana Criminal Justice Institute plans to conduct monthly reviews of spending — with any “deviations” to be “flagged, investigated, and addressed,” Executive Director Douglas Huntsinger and Chief Financial Officer Sheryll Espinas wrote to Ranney.
Some agencies took aim at their contracts.
State Budget Director Chad Ranney details the state’s fiscal closeout on July 15, 2025. (Whitney Downard/Indiana Capital Chronicle)
The Indiana Department of Administration expects to save upwards of $2 million with the elimination of consulting and software contracts identified in a six-month “deep dive.”
“IDOA will take a robust look at any new contract or expense to make sure we will stay within our spending plan before locking ourselves into any new commitments,” Commissioner Brandon Clifton wrote.
Lt. Gov. Micah Beckwith’s office conserved more than $650,000 by discontinuing agreements, according to its submission. It renegotiated another to save $15,000.
The Indiana State Department of Agriculture, which Beckwith oversees, let a contract with law firm Barnes & Thornburg expire, instead hiring a general counsel and leaning on Attorney General Todd Rokita’s office when needed. It stopped advertising in an agricultural magazine and worked with the Indiana State Fair to store equipment rather than paying for private storage, per its plan.
The agency was among those that cut jobs.
It got rid of six vacant positions instead of filling them, and is limiting travel for remaining staff. That includes events, conferences and trade missions. It also dropped a subscription to policy monitoring tool Politico Pro.
Beckwith also oversees the Office of Community and Rural Affairs, which described eliminating four positions and instituting travel limits. Non-critical technology and equipment upgrades are on hold.
The Indiana Destination Development Corporation saw one of the largest cuts — 85% of its budget. As a result it laid off three employees and didn’t rehire five open positions, according to CEO Amy Howell’s plan. The director of the Lincoln Amphitheatre will be paid out of an account dedicated to the historic site instead of the agency’s main fund.
Some savings will come at the expense of others.
The Indiana Department of Administration will pass on the cost of running the state’s conference center streaming services to its peers.
“As opposed to IDOA shouldering these expenses, we will charge agencies a fee,” Clifton wrote.
His plan also noted the agency is no longer obligated to cover about $1 million in maintenance and operational costs annually for the Indiana Historical Society. The change, made in the budget, originally came with language that would’ve forced the institution out of its building.
More switch-ups are on the way — but may require legislative help.
Establishing a statutory cap on forensic medical exam reimbursement could save the state $1 million or $2 million, according to the Indiana Criminal Justice Institute.
The lack of a cap means medical providers are submitting charges at “significant(ly) varying amounts,” according to the agency’s plan. It’s working on a study to “establish a sustainable reimbursement framework that continues to support victims of sexual assault while producing greater predictability and cost stability for the state.”
Agencies were also asked to describe anticipated procurement and capital expenditures — which could get pricey for the institute. It needs a new Victim Compensation Claim System during this fiscal year, which began July 1.
Despite warning that the 5% reserve amounts were “unlikely to be released,” the State Budget Agency did approve plans with exemption requests.
Institute funds for victims of violent crime and domestic violence were spared, for instance.
Notably, the Indiana Election Division requested a wholesale exemption.
“We are very sensitive to the rising costs of providing public services and the case of elections is no exception. Since 2016, the cost of administering elections has skyrocketed due to cyber and physical security threats,” bipartisan Co-Directors Bradley King and Angela Nussmeyer wrote.
Lawsuits have also hit the agency hard.
A recent Indiana Supreme Court ruling will cost an estimated $145,000, while a separate federal ruling will require it to pay more than $100,000 per fiscal year to provide specialized software to certain voters, according to the duo.
The agency has still cut other costs by more than 10%, King and Nussmeyer assured Ranney.
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