Heading into the last month of the fiscal year, Indiana’s general fund revenues are nearly on target with the most recent revenue forecast. Through eleven months of the fiscal year, state revenues are just 0.2 percent behind December’s forecast.
May’s tax collections were significantly below predicted levels, though state budget director Adam Horst says that was expected.
Due to streamlined operations at the Department of Revenue, far more tax returns were processed in April than ever before, which meant fewer were processed in May so the state brought in less revenue than projected.
Still, Horst says revenues are ahead of the state budget plan, and June is typically the second largest revenue month of the year, meaning this month will determine how sound the state’s position is as the fiscal year ends.
June’s revenues will also help determine how much money the state gives back to its taxpayers this year. A law passed in 2011 mandates a refund to Hoosiers if the state’s surplus gets too large.