Indiana State Workforce Drops 5% Amid Budget Cuts

According to an article from the Indiana Capitol Chronicle, Indiana’s state government has lost about 5% of its workforce since December, falling from more than 32,000 employees to just over 30,600.

The reduction stems from a mandated 10% spending cut across agencies, which has primarily impacted personnel costs since many departments spend the majority of their budgets on salaries. As a result, agencies are laying off workers, leaving positions unfilled, and redistributing duties among remaining employees. In some cases, new job postings must remain vacant for at least a month before hiring is allowed, stretching workloads further. While a few agencies, like the Commission for Higher Education, have offered raises to acknowledge the increased responsibilities, such efforts appear to be rare.

Beyond staffing cuts, agencies are also trimming contracts, delaying vehicle replacements, and seeking regulatory changes to save money. Yet, even as resources shrink, some departments face new or expanded duties without added funding—for example, the Department of Revenue must run a tax amnesty program.

Meanwhile, certain functions, such as health facility oversight, have been granted exemptions due to safety concerns, and some costly programs, like purchasing execution drugs, continue despite budget pressure.

Casey and The Dude weigh in on the story: