Thursday, April 9th, 2020

Indiana on pace for budget surplus

Posted: Thursday, December 15, 2011 Report

An updated state revenue forecast suggests Indiana could end the current fiscal year with a $1.77 billion surplus. Most of that comes from spending cuts implemented during the 2010-2011 budget cycle. Higher revenues than anticipated in a forecast earlier this year and the discovery of more than $300 million in misplaced tax revenue are also contributing to the surplus prediction.

If the state meets expectations, residents could receive an income tax refund in 2013.

The $1.77 billion would be more than 10 percent of planned spending for the next budget year. A law put on the books this year calls for an automatic taxpayer refund if the surplus hits that 10 percent threshold.

But lawmakers also have the option of changing that number of increasing state spending.