Looking at Daniels' legacy

INDIANAPOLIS, Ind. (WTHI) - Indiana Governor Mitch Daniels leaves office in just a few weeks. But for 8 years now his policies have shaped lives across the state and right here in the Wabash Valley.
     
This week, News 10 is taking a look back at the governor's time in office and his lasting legacy.
Wednesday night looked at how the cuts to taxes and to the budget have shaped Indiana's future across the state and in our backyard.

"Tonight, while states elsewhere twist in financial agony, Indiana has an honestly balanced budget, a strong, protective reserve in our state savings account, and the first AAA credit rating in state history,” said Daniels at his 2012 State of the State address.
    
The first speech of Mitch Daniels’ last year in office, glorified the changes made to the Indiana's budget during his tenure as governor. And on paper, he's exactly right.
    
Earlier this year, a debt number released from the non partisan state budget solutions group showed Indiana had the 3rd lowest debt of any state per citizen.
     
But, critics say the cornerstones of the balanced budget came at the expense of government funding.
     
Right here in Terre Haute, that meant cuts to higher education like Indiana State University, which lost 3 percent of it's budget in 2010.
   
While the state budget has done considerably well, Daniels cuts to local government during the recession were intended to help taxpayers. In the end, city's claim they lost funding. You may remember the program better as the property tax caps.
    
Caps on taxes that cities and counties say provides the services that their citizens have become accustomed to.
    
In the city of Terre Haute, Mayor Duke Bennett estimates the city has lost over 21 million dollars in revenue since the caps came in.
    
But Governor Daniels feels the tightening of the fiscal belt has long been overdue.

"Local government has gotten serious about protecting taxpayers because now they have a little extra pressure on them to do it,” he told News 10 in early December. “But there’s still flexibility you've seen school districts and others get their citizens permission to raise a little extra money and if you make a good case, Hoosiers will show common sense and let you do it.”
    
So as Daniels exits with the state government in an enviable position, only time will tell how cuts and caps provide a prosperous future locally.