INDIANAPOLIS (AP) - Despite economic woes, Indiana ended the last fiscal year with its third consecutive balanced budget.

State Auditor Tim Berry says Indiana closed the books on the
fiscal year that ended on June 30 with revenues exceeding spending
by about $321 million.

That's in part due to spending restraints ordered by Gov. Mitch
Daniels that included some agencies not filling vacant positions and delaying some capital projects.

State Budget Director Chris Ruhl says Indiana can now avoid the
dramatic cuts some states are now making.

He says Indiana is on firm financial ground, while 29 other states - including the four surrounding Indiana - are making big spending cuts or weighing tax increases to combat deficits.

The state ended the year with nearly $600 million in its main checking account. That combined with savings accounts left the state with a budget surplus of about $1.4 billion.

(Copyright 2008 by The Associated Press. All Rights Reserved.)