 In his first State of the State address on January 18, 2005, Daniels put forward his agenda to improve the State's fiscal situation. Indiana has a biennial budget, and had a projected two-year deficit of $ 800 million. Daniels called for strict controls on all spending increases, and reducing the annual growth rate of the budget. He also proposed a one-year 1 % tax increase on all individuals and entities earning over $ 100,000. The taxing proposal was controversial and the Republican Speaker of the House, Brian Bosma, criticized Daniels and refused to allow the proposal to be debated.
