Forecast: State revenues down by about 1 percent for next two years

INDIANAPOLIS – The State Budget Committee on Thursday approved $10 million in deferred maintenance projects for IPFW’s campus.

The group of four lawmakers and the state budget director also heard a revenue forecast that was revised downward by about $175 million – or less than 1 percent. The reduction is about $40 million in fiscal year 2016 and $135 million in fiscal year 2017.

The cause for the drop is largely lagging sales tax collections.

“There is no way around it, Indiana’s economy is flat-lining,” said Sen. Karen Tallian, D-Portage. “Forecasters are predicting what Hoosiers households already know: Incomes are stuck in a decade-long holding pattern.”

An economist hired by the state said Indiana is in its 80th month of expansion and the average time between recessions is 60 months.

Republicans controlling the committee, however, didn’t express outward concern given the small percentage of change in a $31 billion budget.

The proposed spending plan is still balanced and the current surplus is about $2.1 billion.