By Eric Bradner, Evansville Courier & Press
INDIANAPOLIS - A new state tax collection forecast predicts Indiana will collect $690 million less over the next two years than the same fiscal forecasting committee projected in December.
The news is reflective of the sour economy, but not nearly as grim as the $1 billion downgrade some had expected.
Delivered today to the bipartisan State Budget Committee, the forecast predicted Indiana would collect $27.5 billion in taxes over the next two years.
The forecast comes as state lawmakers work toward crafting Indiana's next budget. Senate Republicans have proposed a two-year, $28.1 billion budget that also uses $2 billion in federal stimulus money to slightly boost education spending.
That budget's architect, Senate Appropriations Chair Luke Kenley, R-Noblesville, as well as Gov. Mitch Daniels, had warned that if today's forecast showed an even steeper state revenue decline, major cuts would be in order.
Instead, on Friday some lawmakers said they consider the forecast overly optimistic, and expect the state to take in even less.
Kenley said he planned on a $1 billion downgrade when he put together the Senate Republican budget.