Indiana Comptroller Elise Nieshalla has built a reputation as a leading voice on fiscal responsibility, both in her state and across the country. As chair of the National Debt Crisis Task Force for the State Financial Officers Foundation (SFOF), she has been outspoken about the dangers of the $37 trillion federal debt and the importance of responsible budgeting. She recently spoke with American Habits editor Ray Nothstine in New Orleans at State Policy Network’s 33rd Annual Meeting about Indiana’s fiscal success, federalism, and why other states should join the call to rein in federal spending.
Dale Falwell, the former North Carolina treasurer, called himself “the keeper of the public purse.” Love that framework.
Your former governor Mitch Daniels once called the federal debt the “new red menace.” As chair of the National Debt Crisis Task Force and an advocate for addressing the $37 trillion national debt, how can Indiana’s success with balanced budgets and low debt serve as a model for federal fiscal policy?
Elise Nieshalla: You referenced our former governor, Mitch Daniels, who has been an absolute champion, sounding the alarm on the massive problem of the nation’s debt load. When he came to Indiana, he had just finished serving as the director of the Office of Management and Budget under President Bush, where he became known as “the Blade” for the cuts that he made.
When he came back to Indiana, he became “the Blade” for our state — and we needed him. At the time, Indiana faced significant debt and cash flow problems. Daniels had the fortitude to lead both the state and the legislature through the tough cuts that were necessary. His leadership put Indiana on a new fiscal trajectory, and today we stand as proof that a state can turn its financial position around.
