There are two sources for this article–Inside Indiana Business and nwi.com. Both articles deal with what has happened in Indiana since 2005, when Governor Mitch Daniels took office. When Governor Daniels took office, the state had a deficit of $600 million.  Today, Indiana has a $1.3 billion budget surplus.

As interesting as the surplus is, it is also interesting to see how it will be used. Part of it will be refunded to the taxpayers and part of it will be used to pay for full-day kindergarten in the 2012-13 school year.

The article at nwi.com reports:

Based on the current budget surplus, Daniels said Hoosiers filing their income taxes in 2013 will be able to deduct about $70 from the taxes owed. That’s $140 off for a joint return. Individuals who owe no taxes still will receive the refund.

“At some point when budgets are balanced and reserves are full, the state should stop collecting money and leave it with the people who earned it,” Daniels said.

The article at Inside Indiana Business reports:

Compared to residents in other states, Hoosiers are enjoying relatively strong private-sector job growth, lower property taxes, an improved AAA credit rating and the fewest number of state employees per capita anywhere in the country. These developments are part of what has made Daniels popular among Indiana voters.

If the states are laboratories for the federal government, we need to take a very close look to see if what Mitch Daniels has done in Indiana can be applied to the federal government.