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State Amasses $1.2 Billion Surplus

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Photo: Tracy O (Flickr)

Tax collections are finally running ahead of state forecasts.

State Auditor Tim Berry reported Thursday that despite the economic recession and lower revenue collection than expected, Indiana ‘s current cash reserves total nearly $1.2 billion.

Berry says a number of factors contributed to the higher-than-expected surplus: state government and education budgets were cut and revenues over the last two months were much higher than expected.

Berry also singled out state employees for thanks.

“Many of them who are doing the jobs that two or three people used to do to provide the services at the most cost-effective manner for the taxpayers,” he said.

But House Democratic leader Pat Bauer says the state isn’t celebrating a healthy budget or job creation – it’s celebrating cuts.

“Cuts to education,” he said, “cuts to children’s help and health care and cuts to practically everybody else’s health care that has suffered through this great recession.”

Indiana spent $1.5 billion dollars less than anticipated in its previous two-year budget, which ran from July of 2009 through June of this year.

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