From Eric Dondero:

With a potential state budget defecit looming, Indiana's Republican Governor Mitch Daniels has chosen to take the libertarian route of budget cuts, rather than the liberal-to-moderate course of raising taxes.

Via NewsMax:

Among other things, Daniels has ordered agencies to cut spending by 10 percent; reductions in reimbursement rates for some Medicaid providers; no pay raises for state employees next year; delays in some building projects; and state employees be allowed to take unpaid leave voluntarily.

October tax collections were $46 million less than forecast... Daniels said the state's surplus that stood at $1.3 billion in July would be wiped out by next August.

He said the state's social services agency would announce the specific cuts next week.

In another move, sure to be applauded by libertarians, Daniels is freezing government worker pay raises. Continuing:

Next year will mark the second consecutive one in which state employees will not get pay raises.

Though, in what may come as somewhat of a dissapointment to libertarians, Daniels vows to only "avoid or minimize" state employee lay-offs.

Daniels long considered a standard conservative, has had some history with libertarians, and even the Indiana Libertarian Party.

NWI.com (NorthWest Indiana) 6/21/09:

Govs. Mitch Daniels and Frank O'Bannon professed to like Andy [Horning - 2 time Libertarian Party candidate for Governor]... Daniels has even acknowledged his admiration for Libertarian principles and concepts.

The Indiana LP is one of the best organized in the Nation. Currently 15 Libertarians serve in elective and appointive office throughout the State, including Indiana Public Defenders Commission Board member Mark Rutherford, Hagerstown Judge Susan Bell, Pottowattamie Town Councilman Michael Sloan, and Indianapolis City Councilman Ed Coleman.

Photo of Gov. Daniels at a July 4th parade riding his signature Harley.