Hot Topic: Indiana's State Budget
Indiana's General Assembly will meet in 2011 to craft a budget for the next two fiscal years, 2012 and 2013. The Great Recession but the Indiana budget into a deep hole. Revenues fell by short of projections by $x billion in fiscal years 2009-11. Balances fell to rock-bottom levels. Federal stimulus money filled in some of the gap, but the state was forced to cut spending $xx below planned appropriations.
Now the economy is beginning to recover, but revenues are forecast to grow only at normal rates. Accelerated growth would be needed to regain what was lost in the recession.
No tax increases are likely. The Federal government's stimulus program is set to end. And Indiana has used up all of its available balances. That means that appropriations cannot be more than the expected Indiana revenues in the coming biennium. The 2012-13 budgets will be smaller than the 2010-11 budgets.
In a sense, it's a "re-set." Appropriations will be downsized to match revenues, which are not expected to recover their pre-recession growth path. The recession spending cuts will be made permanent. Without an acceleration of revenues, Indiana's state government will be permanently smaller than it would have been.
Want to know more?
|To Find:||Go To:|
|An overview of the Indiana revenues, expenditures and balances||An Overview of the Indiana State Budget|
|An essay about the outlook for Indiana's state budget||Indiana Budget Outlook|
|Detailed information about state balances||Indiana State Balances|
|Detailed information about revenue forecasts||Indiana Revenue Forecasts|