IBJNews

Indiana senator wants automatic tax refund revised

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Senate's lead budget writer said Thursday the state needs to save more money before it begins sending taxpayers automatic refund checks.

The automatic refund is triggered when the state socks away an amount equal to at least 10 percent of its planned spending. But Senate Appropriations Committee Chairman Luke Kenley, R-Noblesville, said the state should hold more money in cash reserves before the tax refunds kick in.

The increased state savings would be used to buffer the state's school system if it faces another downturn like the Great Recession.

"I think the reserve based on our experience in the recession, when it took $3 billion to solve that problem, I think the 10 percent (state cash reserve) looks just too tight to me," he said.

The Senate Appropriations Committee took an initial crack at vetting the bill Thursday and plans to come back next week to work on it further. Lawmakers end work during their 2012 session on March 14.

"We'll work with Sen. Kenley and monitor the bill's progress," said Jane Jankowski, spokeswoman for Gov. Mitch Daniels.

Lawmakers approved Daniels' automatic tax refund during last year's session but changed the original proposal to use a portion of the cash reserve to pay down teacher pension obligations. Beginning in 2023, the state is facing payments upward of $1 billion a year to pensions guaranteed to teachers hired before 1996.

Budget cuts, improved tax collections and a $320-million error left Indiana with an estimated $1.8 billion in cash reserves. Daniels estimates each taxpayer would get an additional $50 back if the state meets its estimated reserve at the close of the current budget.

Kenley's measure would not kick in until 2014 and would change the tax refunds to go out only in years when lawmakers craft their biennial budget.

ADVERTISEMENT

  • I feel better
    I have an idea, let Mitch and the boys keep all money that is made for anyone who is not a billionaire- the job creators- and let them dole the money to the serfs of this state. The republicans do not trust the people. They think that the state should control everything, and all of the money. The bill passed last year was a joke. The people should revolt, kick all of the bums out, take their retirement, like they are taking our money back. Boycott, all inclubements- let us start over. Luke, Pat, Brian, Mitch let the people live, not just talk action. The mantra and reality do not add up.
  • Trey
    Just keep the damn money and screw us some more!! I am sure you have already found a new tax or two to get more money,so we will be losing even more. I hate this state, politicians and these damn FEMA camps that are popping up. Bet the old, poor, and unemployed are on the RED List....

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT