MERRILLVILLE | Despite the recession, Indiana and Indiana businesses are making strides in weathering the economic downturn and seizing opportunities, according to Lt. Gov. Becky Skillman.

Skillman presented a snapshot of Indiana's economy and hopes for the future during The Times' Northwest Indiana Business and Industry Hall of Fame luncheon Wednesday at the Radisson Hotel.

The state has taken an economic hit, and state government will have less money to work with in 2011 than in 2010, she said.

To help offset those deficits, Skillman said state agency budgets have been reduced by 20 percent. The state has imposed a hiring freeze, authorized no raises and asked employees to take voluntary furlough days.

Yet, she said unlike other states, Indiana has not raised taxes since the recession began."The hard work is just beginning," Skillman said. "We need to live within our means."            

Businesses and Hoosier families across the state are feeling the economic pinch, too, she said.

"We need our business community to be stronger than ever," Skillman said. "The recession affects everything. Some businesses will falter, some will fail. But we plan to make this a recession of opportunity."

In fact, she said, Indiana's economic policies are helping to make the state one of the best places to do business. For example, Indiana maintains a AAA credit rating with Standard & Poors.

"We have the best economic development tool box," Skillman said, pointing to such programs as the 10-year Major Moves program, which is pumping billions of dollars into highway projects.

In addition, the Indiana Economic Development Corp., a state agency, has inked deals with 150 companies to settle in the state and create 20,000 new jobs for Hoosiers. The auto industry is also investing hundreds of millions of dollars in Indiana plants.

"Why is that important for Northwest Indiana?" she asked. "You know the number of manufacturers and suppliers to the auto industry there are in Northwest Indiana."

Other important economic development opportunities will be opened by the Illiana Expressway, Skillman said. "The Illiana Expressway is a public-private partnership that will lead to more jobs and investment."

Those kind of partnerships are critical to the future of the state, she said.

"Indiana is fiscally sound and economically sound. That makes a huge difference to businesses," Skillman said. "Indiana will be a beacon of fiscal responsibility in America's economic storm."