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Home Illinois News

GOP-controlled Indiana (to the east of Illinois) boasts $1.78 Billion budget reserve

Illinois Review by Illinois Review
July 12, 2019
in Illinois News
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INDIANAPOLIS – Just across the border to the east of Illinois, the state of Indiana announced this week they have a budget surplus of $42 million dollars from Fiscal Year 2017. But that's not all … 

That's $42 million more they collected in 2017 than what they spent in 2018.

From the Northwest Indiana Times:

"This is good news for Indiana taxpayers," State Auditor Tera Klutz said. "Just like hardworking Hoosiers across the state of Indiana, we continue to live within our means, we pay our bills on time, we provide needed services as well as plan for the future."

The annual budget surplus was built in part through strong year-over-year growth in sales tax (3.7 percent increase) and personal income tax (4.2 percent) collections, according to Micah Vincent, director of the Indiana Office of Management and Budget.

In case you're wondering, the governor of Indiana is a Republican. But it gets better … 

The administration of Republican Gov. Eric Holcomb also held back $318 million in spending appropriated by the Republican-controlled General Assembly, about one-third of which was money set aside for Medicaid expenses that did not materialize.

Indiana's combined budget reserve, including the General Fund surplus ($302.7 million), Medicaid reserve ($577.6 million), tuition reserve ($348.3 million) and Rainy Day Fund ($548.5 million), now stands at $1.78 billion.

Indiana has a Republican state government trifecta. A trifecta exists when one political party simultaneously holds the governor’s office and majorities in both state legislative chambers. 

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