Indiana posted a stronger third quarter of tax revenues than expected this fiscal year. That could have an impact on budget negotiations as the General Assembly nears the finish line.
Indiana sales tax revenues actually struggled during the most recent four months of the fiscal year, falling more than $40 million behind the most recent forecast.
But overall revenues were boosted by a surge in individual income tax collections, which came in more than $70 million ahead. For the entire fiscal year, the state is $74 million better than predicted levels. The third quarter numbers come ahead of a new revenue forecast due in the next couple weeks.
House Ways and Means chair Tim Brown says the April forecast will be an important point of information, coupled with revenue data from the first segment of 2013.
“We’ll be able to look at in comparison with the December forecast to see if the first quarter has grown appropriately with the way we think it should,” he says.
Senate Appropriations chair Luke Kenley downplayed the significance of the upcoming forecast, noting the Senate budget was prepared having a rough idea of what the forecast will predict.