Archive

Posts Tagged ‘Indiana Fiscal Policy Institute’

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.

Report Shows Which Counties Pay More, Get More State Taxes

The Indiana Fiscal Policy Institute and Ball State University’s Miller College of Business and Economic Research have released a first of its kinds report in the state that tracks the flow of Indiana tax dollars to and from individual counties. The report shows that twenty two of Indiana’s ninety two counties pay more in state tax dollars than they receive. With few exceptions, those counties were in Indiana’s metropolitan areas, while mostly rural counties were net recipients of state tax dollars. Indiana Fiscal Policy Institute executive director John Ketzenberger says that trend of urban areas subsidizing services in rural areas is mirrored in other states. And he adds that it challenges a long standing belief in the General Assembly about taxpayers sending their money to Indianapolis.

“I think that if you look at the numbers, they speak for themselves. The fact is, urban counties like Marion, Allen, Vanderburgh and others, essentially subsidize more rural counties.”

The report analyzes state revenue for fiscal year 2009. It does not consider other revenue that counties receive, including federal and local tax revenue. It also looks at 550 ways state money can be spent in a given county, including Medicaid payments, public education, and transportation.

Fiscal Policy Institute Names New President

The Indiana Fiscal Policy Institute, an organization that has been relatively silent on state financial policy during the past couple of years, has appointed Indiana Week in Review panelist, and Indianapolis Star reporter John Ketzenberger as their new president. Indiana Public Broadcasting’s Marianne Holland reports.