Gov. Eric Holcomb's state budget proposal is receiving mixed reviews from education groups.

Many school leaders feared the state's education budget approved by lawmakers in 2019 would be cut back in light of revenue shortfalls spurred by the COVID-19 pandemic.

Officials say they expect a $1.7 billion shortfall this fiscal year (which ends in two weeks) and another roughly $2 billion loss next fiscal year.

At a press conference Wednesday, Gov. Eric Holcomb said the state's budget for K-12 schools approved by lawmakers in 2019 will remain on track, despite revenue shortfalls spurred by the COVID-19 pandemic.

Perhaps $1 billion will have to be spent from the state's $2.3 billion in cash reserves to get through the budget year that ends June 30, Gov. Eric Holcomb said Friday.

Indiana officials are still optimistic the states economy will bounce back from the effects of the novel coronavirus.

Indiana lawmakers created an automatic taxpayer refund in 2011, but the state was at least $150 million away from hitting the refund trigger this year.

Most of the nearly 300 new laws crafted by the General Assembly this year take effect Monday.

Neither Republican Gov. Eric Holcomb nor legislative leaders sought to include money for additional grants in the new state budget adopted last month.

The states new, two-year budget allows funding for kindergartners who are 5 by Sept. 1 this year.