Indiana federal aid target in national debt deal - Cincinnati News, FOX19-WXIX TV

Indiana federal aid target in national debt deal

INDIANAPOLIS (AP) -

Indiana won't emerge unscathed from the debt deal Congress and President Barack Obama struck at the eleventh hour.

The deal calls for $917 billion in federal cuts. That means transportation, education and other domestic spending programs are on the chopping block.

Indiana collects about $9 billion from the federal government each year. The money helps fund education, anti-terrorism programs, disaster relief and housing aid for low-income residents.

Indiana Senate Appropriations Chairman Luke Kenley says he doesn't see the state replacing those funds if they're cut.

States won't get a sense of the cuts' impact until Obama introduces his next budget. But Michael Bird of the National Conference of State Legislatures says states will have to set priorities.

Copyright 2011 by The Associated Press. All Rights Reserved.

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