Photo: Ben Adams (Flickr)
Indiana’s overall tax collections last month were strong, yet individual income taxes continue to come in under projections.
Indiana has put together three consecutive months of tax revenue collections that exceed expected levels, including May revenues that are $11 million above target.
Yet with only one month left in the fiscal year, the state still has not closed the gap on its fiscal projections. It is nearly $50 million short of expectations.
Playing a significant role in that deficit are individual income taxes, which are nearly $150 million below target.
Still, Governor Mike Pence says he’s encouraged that the overall revenue picture is continuing to recover.
“We believe that we’re on track to finish this fiscal year with a $100 million in a surplus and with reserves nearly $2 billion,” he says.
Pence says the state will continue to monitor its revenues and exercise caution while advancing policies the governor says will foster economic growth.