NewsPublic Affairs / December 18, 2017

Less Tax Collections Than Expected For Indiana In New Forecast

The new forecast projects the state will bring in nearly 400 million dollars less than expected in the current two-year budget cycle.2017-12-18T00:00:00-05:00
Original story from   IPBS-RJC

Article origination IPBS-RJC
Less Tax Collections Than Expected For Indiana In New Forecast

State fiscal analysts delivered a slightly pessimistic revenue forecast Monday.

Brandon Smith/IPB News

A revenue forecast released Monday predicts Indiana will collect hundreds of millions of dollars less in taxes than previously expected over the next year and a half. But legislative fiscal leaders say it’s not time to panic.

The new forecast projects the state will bring in nearly $400 million less than expected in the current two-year budget cycle. That’s compared to a forecast from April lawmakers used to finalize the state budget.

House Ways and Means Chair Rep. Tim Brown (R-Crawfordsville) says conservative budget practices put the state in a position to absorb the predicted hit without a need for budget cuts.

“Having a structural surplus and reserves, to have opportunity to make adjustments as we need,” Brown says.

Sen. Karen Tallian (D-Portage) says the state shouldn’t be in “panic mode.”

“These numbers still are only a projection,” she says.

The forecast predicts less money than previously expected in all major tax categories: sales, individual income, corporate income, and gaming.

 

 

Related News

Deal To Reopen Government Includes Medical Device Tax Suspension
Unemployment Rate Drops In December, But So Did Labor Force
Senate Committee Begins Debate On Hate Crimes Bill