Gov. Mitch Daniels announced this morning that state revenue collections are off another $60 million, bringing the total shortfall to $310 million since July. The governor has been able to absorb over a billion dollars in revenue shortfalls in the past, but future cuts are going to be painful. Daniels called for a 10% reduction across the board in state government, use of a portion of the state surplus, and warned that schools may not receive funding increases built into the 2010-11 budget.

We’re keeping our ears to the ground to see what Democrats have to say about this. The news of a $250 million shortfall last month didn’t silence Speaker Pat Bauer’s call for more state spending. That message wasn’t received well around the state (see: here, here, here, and here).  With federal stimulus falling short of stimulating anything, it’s hard to believe that Bauer still thinks that more spending is the path to recovery.  We’ll see if this latest round of bad news convinces him otherwise.