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Less Tax Collections Than Expected For Indiana In New Forecast

State fiscal analysts delivered a slightly pessimistic revenue forecast Monday.

A revenue forecast released Monday predicts Indiana will collect hundreds of millions of dollars less in taxes than previously expected over the next year and a half. But legislative fiscal leaders say it’s not time to panic.

The new forecast projects the state will bring in nearly $400 million less than expected in the current two-year budget cycle. That’s compared to a forecast from April lawmakers used to finalize the state budget.

House Ways and Means Chair Rep. Tim Brown (R-Crawfordsville) says conservative budget practices put the state in a position to absorb the predicted hit without a need for budget cuts.

“Having a structural surplus and reserves, to have opportunity to make adjustments as we need,” Brown says.

Sen. Karen Tallian (D-Portage) says the state shouldn’t be in “panic mode.”

“These numbers still are only a projection,” she says.

The forecast predicts less money than previously expected in all major tax categories: sales, individual income, corporate income, and gaming.

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