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Indiana has $353 million surplus after three months

ahead budget

Indiana can trigger an automatic taxpayer refund law in odd-numbered years, when its two-year budget cycle ends. (Justin Hicks)

Less than a quarter into the new fiscal year, Indiana has collected hundreds of millions more in taxes than expected.

Through August, Indiana collected $353 million more in revenue than the current budget needs. That’s ahead of where the state was a year ago, and it finished the last fiscal year with $3 billion more than its budget plan.

Join the conversation and sign up for the Indiana Two-Way. Text "Indiana" to 73224. Your comments and questions in response to our weekly text help us find the answers you need leading up to Election Day.

Indiana can trigger an automatic taxpayer refund law in odd-numbered years, when its two-year budget cycle ends. It did so in 2021, sending back $125 per person to anyone who filed a tax return.

But triggering that law in 2023 will be more difficult. That’s because of a change lawmakers put into recent legislation, SEA 2 (ss), during the special session. Next year, when closing the state’s financial books, the first $1 billion of excess reserves won’t be used for a taxpayer refund. Instead, it will go entirely to paying down debt in a teacher pension fund.

Any excess tax collections after that would go towards taxpayer refunds.

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

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