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. Why not take some time to do some research before traveling to that Indiana town or city, and find the ones that are no smoking either inside, or have a patio? People like yourself are just being selfish, and unnecessarily trying to take away all indoor venues that smokers can enjoy themselves at. Last time I checked, it is still a free country, and businesses do respond to market pressure and will ban smoking, if there's enough demand by customers for it(i.e. Linebacker Lounge in South Bend, and Rack and Helen's in New Haven, IN, outside of Fort Wayne). Indiana law already unnecessarily forced restaurants with a bar area to be no smoking, so why not support those restaurants that were forced to ban smoking against their will? Also, I'm always surprised at the number of bars that chose to ban smoking on their own, in non-ban parts of Indiana I'll sometimes travel into. Whiting, IN(just southeast of Chicago) has at least a few bars that went no smoking on their own accord, and despite no selfish government ban forcing those bars to make that move against their will! I'd much rather have a balance of both smoking and non-smoking bars, rather than a complete bar smoking ban that'll only force more bars to close their doors. And besides IMO, there are much worser things to worry about, than cigarette smoke inside a bar. If you feel a bar is too smoky, then simply walk out and take your business to a different bar!

    2. As other states are realizing the harm in jailing offenders of marijuana...Indiana steps backwards into the script of Reefer Madness. Well...you guys voted for your Gov...up to you to vote him out. Signed, Citizen of Florida...the next state to have medical marijuana.

    3. It's empowering for this niche community to know that they have an advocate on their side in case things go awry. http://www.youtube.com/watch?v=Lrst9VXVKfE

    4. Apparently the settlement over Angie's List "bundling" charges hasn't stopped the practice! My membership is up for renewal, and I'm on my third email trying to get a "basic" membership rather than the "bundled" version they're trying to charge me for. Frustrating!!

    5. Well....as a vendor to both of these builders I guess I have the right to comment. Davis closed his doors with integrity.He paid me every penny he owed me. Estridge,STILL owes me thousands and thousands of dollars. The last few years of my life have been spent working 2 jobs, paying off the suppliers I used to work on Estridge jobs and just struggling to survive. Shame on you Paul...and shame on you IBJ! Maybe you should have contacted the hundreds of vendors that Paul stiffed. I'm sure your "rises from the ashes" spin on reporting would have contained true stories of real people who have struggled to find work and pay of their debts (something that Paul didn't even attempt to do).

    ADVERTISEMENT