IBJNews

Tax revenue stabilizes in March but still behind for fiscal year

Back to TopCommentsE-mailPrintBookmark and Share

State tax receipts beat projections in March, but a key lawmaker said it’s not enough to clear concerns about Indiana’s finances.

Revenue topped $1.02 billion last month – about 1.4 percent more than estimates released last December. That’s also 11.6 percent more than in March 2013.

Senate Appropriations Chairman Luke Kenley, R-Noblesville, said that sounds like good news. “But it’s actually not,” he said. “Not if you dig deep into the numbers.”

For the fiscal year – which began July 1 – total tax collections are still about $71 million behind the estimates used to write the current two-year budget. And in March, sales tax collections – the state’s highest single source of revenue – remained behind projections.

“I’m scratching my head,” Kenley said. “The economy is not that bad and the stock market is crazy. But our revenues are just not robust.”

Kenley pointed to corporate tax receipts – which are 15 percent higher than projected this fiscal year – as the one positive sign. The increase in revenue is despite cuts in that tax rate. Kenley said that could be the result of companies shifting revenue to Indiana from states that have higher tax rates.

Gov. Mike Pence has already ordered agencies to cut back to try to accommodate the lower than expected revenue. And Kenley said Indiana government remains in good fiscal health, thanks to roughly $2 billion the state had in the bank at the end of the last fiscal year.

But to maintain that, state officials must be careful about future spending, he said. That will be important next year as lawmakers write the next two-year budget.

Kenley said he’s already thinking about it. “We can’t let these things slip,” he said. “We have to keep our good position.”

ADVERTISEMENT

  • Tar, Baby
    Betch'a we'll recover well enough to release the $200 mil for road building before the next legislative session.
  • Breathe A Sigh Of Relief
    OK, now, everyone take a deep, collective breath: aren't we all glad that that Mr. Pence and our illustrious legislators managed to push through all of those tax cuts for the corporations? Whoo-hoo!!!

    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
    1. I think the poster was being sarcastic and only posting or making fun of what is usually posted on here about anything being built in BR or d'town for that matter.

    2. Great news IRL fans: TURBO the IMS sanctioned movie about slugs running the Indy 500 has caught the Securities and Exchange Commission because Dreamworks had to take a $132MILLION write down...because the movie was such a flop. See, the Indy/IMS magic soiled another pair of drawers. Bwahahahahahaha! How's CARTOWN doing? HAHAHAHA...Indy is for losers.

    3. So disappointed in WIBC. This is the last straw to lose a good local morning program. I used to be able to rely on WIBC to give me good local information, news, weather and traffic on my 45 minute commute.Two incidents when I needed local, accurate information regarding severe weather were the first signs I could not now rely on WIBC. I work weekend 12 hour nights for a downtown hospital. This past winter when we had the worst snowfall in my 50 years of life, I came home on a Sunday morning, went to sleep (because I was to go back in Sunday night for another 12 hour shift), and woke up around 1 p.m. to a house with no electricity. I keep an old battery powered radio around and turned on WIBC to see what was going on with the winter storm and the roads and the power outage. Sigh. Only policital stuff. Not even a break in to update on the winter storm warning. The second weather incident occurred when I was driving home during a severe thunderstorm a few months ago. I had already gotten a call from my husband that a tornado warning was just southwest of where I had been. I turned to WIBC to find out what direction the storm was headed so I could figure out a route home, only to find Rush on the air, and again, no breaking away from this stupidity to give me information. Thank God for my phone, which gave me the warning that I was driving in an area where a tornado was seen. Thanks for nothing WIBC. Good luck to you, Steve! We need more of you and not the politics of hatred that WIBC wants to shove at us. Good thing I have Satellite radio.

    4. I read the retail roundup article and tried Burritos and Beers tonight. I'm glad I did, for the food was great. Fresh authentic Mexican food. Great seasoning on the carne asada. A must try!!! Thanks for sharing.

    5. John, unfortunately CTRWD wants to put the tank(s) right next to a nature preserve and at the southern entrance to Carmel off of Keystone. Not exactly the kind of message you want to send to residents and visitors (come see our tanks as you enter our city and we build stuff in nature preserves...

    ADVERTISEMENT