Tax receipts for the first quarter of the state's fiscal year have missed projections that were used to write the current two-year budget and were less than the amount collected during the same period last year, the Indiana State Budget Agency announced Friday.
Overall, receipts were 2.1 percent less than expected, although the numbers for September were not as low as the previous two months.
State Budget Director Brian Bailey said it’s too soon for state officials to act, by making cuts or withholding funds to agencies, for example.
“We still have concerns,” Bailey said. “But, right now, the proper approach is to continue monitoring.”
Individual income taxes are leading the revenue decline. For the quarter – which began July 1 – individual income tax collections totaled $1.17 billion. That’s roughly $81.7 million below the forecast and $58.4 million less than last year’s first quarter.
Sales tax revenue didn’t meet projections but it was higher than last year. And gambling revenues were down for both the quarter and by double digits – 16 percent – in September alone.