Daniels warns of possible government shutdown

INDIANAPOLIS – Gov. Mitch Daniels said Friday he was prepared to keep essential services such as public safety running if lawmakers do not pass a new spending plan by midnight Tuesday, but warned that most of state government would shut down.

Daniels said he would use emergency powers to keep state police and prisons operating, and public assistance – including unemployment insurance – would continue to be rendered to those already eligible. The Indiana National Guard and health officials would be available on standby if needed.

But he said state parks would close, Bureau of Motor Vehicle branches and other state offices would close, as would casinos and the lottery because they are regulated by the state. Most of the state’s 30,900 employees would be furloughed.

Daniels said blame for any shutdown would rest solely with Democratic leaders who control the House because they have not budged from their position on a budget the governor said would decimate the state’s finances and force a future tax increase.

Daniels said with a midnight Tuesday deadline looming for lawmakers to pass a new budget or a stopgap funding measure, he felt compelled to warn the public of the stakes involved.

“I continue to hope and expect and predict that it will not come to this, but I did not want to wait until 24 hours before this remote possibility could occur to let the public know what the consequences would be, and that we’re ready if forced – and I stress forced – to do this,” he said at a Statehouse news conference.