Fiscal Report Shows Tough Decisions for Next General Assembly
-Marianne Holland, Statehouse Bureau Chief
A report released today by the non-partisan Indiana Fiscal Policy Institute shows major challenges for the next budget session of the Indiana General Assembly.
After examining the state’s year end financial closeout, there’s at least one thing Indiana Fiscal Policy Institute director John Ketzenburger says is clear: tough choices lie ahead for the General Assembly as they put together the next biennial budget.
Indiana’s tax revenue fell six point nine percent over the last two fiscal years, putting the state’s revenue collections at about the same level as they were in 2005.
The institute report shows the state at a structural deficit going into the 2012-2013 budget, but credits Governor Mitch Daniel’s spending cuts for mitigating the problem for this year.
It also shows Indiana’s recent property tax changes have meant less funding flexibility during the recession and calls federal stimulus money a bridge across the worst of the revenue losses.