In four of the last five months, Indiana tax revenues fell short of previous forecasts by more than $140 million.
That led to revised predictions this month that lower expectations for the months ahead. New forecasts project Indiana will take in $183 million less at the end of the current fiscal year than the state budget planned, a more than one percent drop.
Still, Ways and Means Committee Chair Tim Brown says budget planners always allow for a margin of error.
“We would like it to be better,” he says. “Everybody would like to see things lift much higher. But I think it’s good that we’re forecasting within our margin of error.”
Recent revenue shortfalls led Governor Pence to cut dollars from Indiana’s higher education institutions. State Budget Committee Chair Luke Kenley says the more conservative forecast should solve that issue.
“If we will now begin to meet the forecasts moving forward that I would hope that he would not continue for 2015 the higher ed cuts,” he says.
In the new, lower forecast, Indiana is still projected to have a budget surplus in each year of the current state budget.