50+ state employees laid off as Indiana budget cuts take effect
Indiana agencies have laid off dozens of state employees in response to recently enacted budget cuts — marking the first such reductions since Gov. Mike Braun signed the state's new, slimmed down spending plan last month.
The governor's office confirmed that agencies under both the education and commerce verticals announced staff reductions on Tuesday. The Indiana State Museum also let go of several employees last week.
State officials attributed the layoffs to the new state budget, which slashed operations funding for most agencies.
Courtney Bearsch, a spokesperson for the Indiana Department of Education, confirmed on Wednesday that 39 employees across four education-related agencies have so far been notified of a 'Reduction in Force' (RIF). Those layoffs included:
16 employees at the Indiana State Library
14 at the Indiana School for the Deaf
6 at the Department of Education
3 at the Commission for Higher Education
'In the final days of the legislative session, our state's leaders had to adjust the final budget to account for an over $2 billion budget shortfall. Like most agencies across state government, agencies within the education vertical saw budget reductions,' Bearsch told the Indiana Capital Chronicle. 'In response, we have had to make difficult decisions regarding our agencies' operations to adjust to the realities of a much tighter budget.'
But cuts to agency funding predates predates the late-session budget shortfall. Braun's draft spending plan — released in February — cut appropriations for the state library by nearly 30%, from roughly $3.7 million a year in the last biennial budget to around $2.6 million.
Original drafts of the budget similarly pitched nearly $1 million in cuts for the Indiana School for the Deaf.
Both proposed cuts were retained in the final version of the two-year spending plan.
Some of the deepest cuts so far appear to be at the Indiana Historical Bureau, a division of the Indiana State Library.
Agencies instructed to withhold funds on top of 5% budget cuts
Five of the bureau's six staffers were let go Tuesday afternoon without advance notice, affected employees told the Capital Chronicle. That leaves just one person to run the office, which manages 750 community-funded markers across Indiana as part of the State Historical Marker Program, in addition to various other public history initiatives.
An additional 43 positions across the education vertical will remain unfilled, for a combined estimated savings of $6.9 million in salary and benefits, Bearsch said.
'This is not something that was taken lightly, and we are grateful for the work of each of these colleagues to serve our agencies and Hoosiers,' she continued. 'Each agency's unique budget and respective reductions determined the staffing adjustments needed. When possible, agencies prioritized not filling vacant positions, as well as leveraging other funding streams, rather than reducing current staffing levels.'
In the commerce vertical, the Indiana Economic Development Corporation (IEDC) eliminated eight positions this week as part of a 12-person reduction in workforce across the vertical, said IEDC spokesperson Erin Sweitzer. Three additional layoffs were recorded at the Indiana Destination Development Corporation (IDDC), and one from the Governor's Workforce Cabinet. Those layoffs followed earlier reductions driven by 'natural employee attrition'— totaling 49 positions since January.
Sweitzer said 89 employees remain at the IEDC and eight at the IDDC. Altogether, the changes are expected to save $7.4 million annually — $1.5 million of which comes from this week's cuts — and 'align' the agency more closely with Braun's strategic priorities, including workforce development and regional economic growth.
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The staffing shakeups follow sharp reductions to some agency budgets. The state's next two-year spending plan was approved by Indiana lawmakers in April — then signed by Braun in May — and will take effect July 1.
The IEDC's operational and programmatic budget was cut by about 25%, from nearly $100 million in the last state budget to about $74 million per year. The state library's annual appropriation dropped from roughly $3.7 million to $2.6 million, and the state museum's from $11.2 million to $10.6 million.
The total number of state employees affected by layoffs remains unclear.
But state data shows that the overall state workforce has already been shrinking in recent months.
According to the Indiana Transparency Portal, the number of state employees fell from 32,212 in December 2024 to 31,513 as of June 10 — a drop of almost 700 workers.
Ivy Tech Community College recently announced it will lay off 202 employees statewide as it responds to significant cuts in state funding and frozen tuition rates.
And Braun's administration last week directed agencies to withhold additional funds on top of 5% budget cuts already built into the $44 billion biennial budget passed by the Republican-led General Assembly in April.
The governor and other state officials have described the reductions as fiscally responsible and necessary for long-term stability. Democrats and other critics have warned, though, that the cuts are likely to interrupt — or end — numerous public services and state programs.
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