Gov. Eric Holcomb is proposing Hoosiers receive another taxpayer refund check to help cover the rising costs of gasoline, food and myriad other products.
The Republican chief executive outlined a plan Thursday for the state to pay $225 to all adult Hoosiers in July or August, on top of the $125 payments already going out.
According to the governor’s office, individuals who received a direct deposit of $125 would get a second deposit of $225, for a total of $350. Hoosiers still waiting for a paper check with their first taxpayer refund instead would be sent a single check in August for $350, or $700 for married couples.
However, the proposal to send Hoosiers an additional $225 requires legislative approval to take effect.
Holcomb said he’s in discussions with the Republican leaders of the Indiana House and Senate about holding a special session before the end of June to make it happen.
“I’ve met with Speaker Huston and Senator Bray and have asked them to discuss getting a billion dollars back into Hoosier hands with their colleagues,” Holcomb said.
“Hoosiers have real needs right now during this period of high inflation, from the gas pump to buying groceries, and everyone should benefit from the state’s success,” he said.
That success is Indiana’s bulging budget reserve that grew by an additional $209.2 million in May as tax collections once again significantly exceeded the state’s forecast revenue for the month.
Altogether, through 11 months of the state’s budget year, tax revenue is running $1.07 billion, or 6.1%, ahead of the Dec. 2021 revised revenue forecast.
Compared to the two-year state budget plan enacted in April 2021, Indiana revenue has topped expectations by $2.75 billion, or 17.3%, according to the State Budget Agency.
Indiana already was projected to end its budget year on June 30 with a record-setting $5.1 billion budget reserve, or 26.7% of 2023 expenses.
The continuing monthly surpluses mean the state will have almost $7 billion in the bank when it closes the books on its 2022 budget year.
Sending back $1 billion to Hoosiers through the $225 per person distribution still would leave the state with its biggest budget reserve ever, records show.
The governor’s plan won quick applause from House Speaker Todd Huston, R-Fishers, and Senate President Rod Bray, R-Martinsville, who both signaled their openness to holding a special legislative session.
“Inflation is having real and negative effects on everyday Hoosiers, whether it's record gas prices or rising grocery and energy bills. That's why I fully support the governor's call for a special session to put more money directly back into taxpayers' pockets,” Huston said.
“By issuing another round of automatic taxpayer refunds, we can provide quick and substantial relief while maintaining the state's prudent reserves and providing budget flexibility moving forward,” he said.
Bray, meanwhile, said Democrats in Washington, D.C., are to blame for the nation’s inflation issues. He said he’s glad Indiana Republicans are in a position to help alleviate the pain Hoosiers are feeling.
"Thanks to Indiana's continued fiscal prudence, we can consider providing some relief to Hoosiers who are trying to adapt to today's challenges by returning some of their hard-earned money back to them,” Bray said.
Statehouse Democrats did not immediately respond to a request for comment on the governor’s proposal.
They’ve repeatedly urged Holcomb to call a special legislative session to temporarily suspend the state’s gasoline tax, which is due to rise 1 cent to 33 cents per gallon next month, and the state’s sales tax on gasoline, already 24 cents per gallon and certain to increase in July due to the higher average statewide price of fuel this month compared to last month.
Lauren Ganapini, executive director of the Indiana Democratic Party, said she’s glad Holcomb and Indiana Republicans finally recognize there are ways for state government to combat global inflation.
“That said, it shouldn’t have taken this long to get the Republicans to actually act and produce what looks like another bare-minimum Band-Aid for Indiana’s long-term problems,” Ganapini said.
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