Indiana Gov. Mitch Daniels said today the budget bill the General Assembly voted on but did not pass last week would have consumed the state’s reserves at the end of two years and left a $1 billion shortfall.
April’s revenues, announced this morning, were $255 million below a revised fiscal forecast issued last month. Daniels said lower-than-expected tax collections will likely continue through the end of this fiscal year.
Lawmakers didn’t pass a new, two-year budget by last Wednesday’s regular session deadline, which means there must be a special session to pass a plan. Daniels said the bill voted on last week spent too much, and he would have vetoed it anyway.
He said a new fiscal forecast based on the reality of current revenue trends is needed before lawmakers go back to work. Daniels hasn’t said when he will call legislators back.