INDIANAPOLIS – Indiana tax collections will grow each of the next two years, giving lawmakers about $840 million in new money to spend in the next biennial budget, according to a revenue forecast released Thursday.
“I would say this is a moderately positive forecast,” said Senate Appropriations Chairman Luke Kenley, R-Noblesville.
He is cautiously optimistic about the expected upturn of 2.4 percent in fiscal year 2016 but less certain about the rise of 3.2 percent in fiscal year 2017.
And Kenley noted it is all about priorities.
More than $800 million in new money sounds like a lot. But, for instance, Superintendent of Public Instruction Glenda Ritz is seeking $560 million alone for K-12 schools.
That doesn’t include the state’s universities, prisons, health care for the poor or myriad other state needs.
The forecast also downgraded the current fiscal year ending in June by about $129 million. Gov. Mike Pence has already required his agencies to hold back spending, and Kenley doesn’t think any major cuts will have to be made.
“This revenue forecast confirms the growth we are seeing across our state and should be an encouragement to every Hoosier,” Pence said.
“While the December revenue forecast projects economic growth for our state, Hoosiers may be assured that our administration will continue to exercise caution as we finalize our recommended budget for the next two years.”