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Holcomb: revenue forecast calls for 'discerning' budget approach

By Brandon Smith

Posted December 16, 2022

Holcomb interview

Gov. Eric Holcomb said the new state revenue forecast is “rosier” than he anticipated. (Alan Mbathi / IPB News)

Gov. Eric Holcomb said the new state revenue forecast is “rosier” than he anticipated. But he said it still calls for a “discerning” approach to writing a new state budget.

The forecast projects lawmakers will have about $600 million per year in new money for the next state budget. That sounds like a lot – but just a 2 percent increase in K-12 tuition support funding alone is at least $160 million per year.

Now, add on the new initiatives Holcomb is proposing: public health spending that costs $130 million just in the first year, another round of READI grants and state employee pay increases.

READ MORE: Indiana boosts state government employee paychecks to fight turnover

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That $600 million in new spending disappears fast. And Holcomb said it requires responsible budgeting.

“At the same time, trying to fund some proven programs – be it in education or workforce development,” Holcomb said.

There will be another revenue forecast in April that will give budget writers an updated picture of how much money they’ll have to spend over the next two years.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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