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Indiana State Revenues Surge Ahead Of Budget Talks

By Brandon Smith

Posted December 5, 2012

State revenues last month continued to surge above the most recent forecasts, putting the state on the road to another yearly surplus. As lawmakers and the newly-elected governor prepare their budget proposals, this month's upcoming revenue forecast is key.

In order to meet the most recent revenue forecasts, state revenues need to grow by 2.2 percent for all of 2012. Through November, growth is at 3.3 percent, more than on pace for the state's surplus to exceed $2 billion by next summer. But state leaders are holding their breaths for Dec. 17, when new state revenue forecasts will be released.

New House Ways and Means chairman Tim Brown has said much of his budget draft will hinge on the new projections, with Governor-elect Mike Pence echoing those thoughts.  But Pence says as he prepares his budget proposal, he's pleased with the strong position Indiana's fiscal health puts the state going forward.

"Because of that strong position we have choices and I believe those choices include tax relief for Hoosiers," Brown says.

Pence's tax relief would come in the form of a 10-percent personal income tax cut.  But House Speaker Brian Bosma and Senate President Pro Tem David Long have both balked at that proposal.

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