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New State Budget Has More New Money Than Previously Announced

State Budget Director Jason Dudich, left, and Office of Management and Budget Director Micah Vincent, right, present Gov. Eric Holcomb's proposed budget. (Brandon Smith/IPB News)

State policymakers will have more new money in the upcoming two-year state budget than many previously thought.

The new budget will have more than $1 billion in new money available. That’s up from the roughly $800 million that was reported last month at a state revenue forecast presentation.

The difference comes from what’s essentially a calculation error – the original estimate didn’t consider the current fiscal year, which is projected to generate more money than previously expected.

Office of Management and Budget Director Micah Vincent says the new money helps policymakers.

“I do think that it was important that the items that the governor sees as a priority did get an increase that may not have been expected by some,” Vincent says.

Some of the priorities in Gov. Eric Holcomb’s proposed budget – which was unveiled Thursday – include fully funded Medicaid and Department of Child Services spending, new dollars for workforce development, and two percent per year increases in K-12 education.

There’s another revenue forecast coming in April before lawmakers finalize the budget. Two years ago, that forecast was wrong by about $150 million, as the state collected less than the budget planned for.

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