Indiana ends fiscal year with $3B in the bank
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Maura Losch/Axios
Indiana had another good economic year — but don't get excited about another automatic taxpayer refund.
Driving the news: State officials on Thursday announced that Indiana had $3 billion in the bank at the close of the fiscal year that ended June 30.
- The state brought in $21.6 billion over the last 12 months, falling short of the previous year's general fund revenue collections but beating expectations.
State of play: Indiana's previous two fiscal years ended with unpredictably and uncharacteristically high cash surpluses, fueled by pandemic-related cash infusions to both institutions and individuals.
- This fiscal year is a return to historic growth patterns, said Cris Johnston, director of the Office of Budget and Management.
Of note: Though the state is banking more than $3 billion, it's not enough to trigger another automatic taxpayer refund like those distributed last year.
Yes, but: State lawmakers passed legislation to accelerate planned income tax cuts, which State Comptroller Tera Klutz called an attempt to "true up" the balance of the state's revenue and expenses.
What we're watching: In December, experts predicted we'd see a mild recession this year.
- That hasn't come to fruition, yet, but the state did see softening in its three main revenue sources — sales, income and corporate tax collections — over the last quarter.
- Sales tax revenue, in particular, could drop as inflation and interest rates could curb spending.
What they're saying: "I think that's one thing, because it's such a big contributor to the general fund, that the state has to watch," Johnston said.