Story about frugal Indiana governor Mitch Daniels at the Weekly Standard.

Excerpt:

Daniels is a font of statistics, but one comes to his lips more than any other. “Only 61 cents of every education dollar gets into the classroom in Indiana.” School funding increased every year under Daniels before the recession, and since the downturn, when most areas of state government have seen cuts of 25 percent or more, education has been reduced by only 2 percent. Yet the local school boards and their Democratic allies in the state legislature continue to complain. Daniels calls education funding “the bloody shirt” of Indiana politics: “It doesn’t take long before somebody starts waving it.” One of my favorite bits of Daniels video on YouTube shows him at a press conference defending a bill to end “social promotion” in the state’s grade schools. School districts were appalled that the bill would pass without “additional resources” to educate the kids who would be held back.

A reporter asked him about it.

“By the time a child has finished third grade, the state has spent $40,000 and the school district has had 720 days to teach that child to read,” he said, tight-lipped. “If that child can’t read by then, there is a fundamental failure in that district. And they’ll need to remedy it. The most unacceptable thing to do is to shove that child along to fourth grade into almost certain academic failure. That’s a cruel thing to do, it’s a wrong thing to do, and we’re going to put an end to it.”

The reporter pressed: But won’t the schools need more money?

Daniels’s eyes got wide.

“More than $40,000 to teach someone how to read? No. It won’t and it shouldn’t and any school district that can’t do it ought to face consequences.”

And this is actually normal behavior for him:

When Daniels took office, in 2004, the state faced a $200 million deficit and hadn’t balanced its budget in seven years. Four years later, all outstanding debts had been paid off; after four balanced budgets, the state was running a surplus of $1.3 billion, which has cushioned the blows from a steady decline in revenues caused by the recession. “That’s what saved us when the recession hit,” one official said. “If we didn’t have the cash reserves and the debts paid off, we would have been toast.” The state today is spending roughly the same amount that it was when Daniels took office, largely because he resisted the budget increases other states were indulging in the past decade.

No other state in the Midwest—all of them, like Indiana, dependent on a declining manufacturing sector—can match this record. Venture capital investment in Indiana had lagged at $39 million annually in the first years of this decade. By 2009 it was averaging $94 million. Even now the state has continued to add jobs—7 percent of new U.S. employment has been in Indiana this year, a state with 2 percent of the country’s population. For the first time in 40 years more people are moving into the state than leaving it. Indiana earned its first triple-A bond rating from Standard and Poor’s in 2008; the other two major bond rating agencies concurred in April 2010, making it one of only nine states with this distinction, and one of only two in the Midwest.

Yes, let’s elect people like Mitch Daniels who like to cut costs instead of increasing spending – people with a record for caring about balancing the budget.

UPDATE: Or not! ECM pointed me out this “truce” comment that he made. It turns out that he is soft on social issues and probably a little soft on foreign policy issues as well! Thanks, ECM.