The state revenue forecast issued Dec.15 predicting Indiana tax collections over the next 30 months is starting out right on target.
Data released Friday by the Indiana State Budget Agency show that Indiana took in $1.71 billion in general fund tax revenue during December.
That was $17.4 million, or just 1%, more than anticipated by the forecast.
The forecast's accuracy is unusually important this year: The Indiana General Assembly will use the expected revenue to produce, by the end of April, a two-year state budget, which the Indiana Constitution requires spend no more than the state will take in.
Digging deeper into last month's results, December personal income tax receipts of $539.7 million exceeded the monthly goal by $34.4 million, or 6.8%.
Meanwhile, December collections from Indiana's 7% sales tax totaled $855.2 million, a shortfall of $20.5 million, or 2.3%.
The remaining state receipts from corporate income taxes, casino wagering taxes and other sources — such as cigarette taxes, alcohol taxes and miscellaneous revenue — largely hit their marks.
The State Budget Agency cautions Hoosiers to not read too much into the results of any single month since tax collections can vary because of tax timing, refunds, late payments and other reasons.
Instead, it observed that Indiana's total tax collections for July-December 2022 were $625.6 million, or 6.9%, greater than the same six-month period in 2021.
State revenue in this budget year also is running $1 billion, or 11.9%, higher than what lawmakers anticipated when they crafted the current state budget in April 2021, data show.
Gov. Eric Holcomb is urging lawmakers to use the extra money, as well as the state revenue growth predicted for the 2024 and 2025 budget years, to boost spending on education, health care, law enforcement and myriad other state government programs and services.
Specifically, the Republican chief executive is requesting $1.16 billion in new tuition-support spending — the greatest dollar increase ever — to provide Indiana elementary, middle and high schools a 6% increase in per-student instructional funding in the first year of the biennial budget, along with a 2% boost in the second year.
Holcomb's budget request includes a second $500 million round of READI grants to improve local quality-of-place amenities, $800 million to reconstruct the Westville Correctional Facility in LaPorte County, $347 million for public health, and significant new spending on public employee and state police salaries, firefighter training resources, workforce development programs, business attraction through Indiana Economic Development Corp., bike trails, land conservation and school safety.
Republican leaders so far aren't sold on Holcomb's plan. They've said the governor's spending proposals certainly will be considered during the annual session that's scheduled to run until April 29, but other GOP initiatives, such as tax cuts and further paying down the state's pension debt, may take priority.
© Copyright 2024, nwitimes.com, Munster, IN