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Tax revenue well above budget plan heading into fiscal year's final month

By Brandon Smith

Posted June 20, 2023

Indiana statehouse

Indiana collected $216 million more in tax revenue in May than the state budget plan expected. (Lauren Chapman/IPB News)

Monthly tax collections show no sign of cooling off based on the state budget plan as Indiana heads into the final month of its fiscal year.

Indiana brought in $216 million more in May than the state budget plan expected. Through 11 months of the fiscal year, that already puts the state more than $2 billion ahead of where it needs to be.

Tax collections have been exceeding budget needs since the start of the current, two-year budget cycle, stretching back to July 2021.

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 on statewide issues.

Lawmakers have already planned to spend much of this year’s surplus. In the new budget, HEA1001, passed a couple months ago, legislators included provisions that will help fund previously approved projects whose costs have gone up because of inflation and supply chain issues.

That includes $800 million for prison upgrades and $100 million for a new lodge at a state park.

READ MORE: Budget turmoil at session’s end delivers $312 million more for K-12 schools

Lawmakers will also use $700 million from the current fiscal year to help pay down an old teacher pension fund.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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