The cash reserves for Indiana's state government have grown to more than $2.1 billion after spending cuts to many state agencies even as tax collections increased slower than expected.
Figures released Thursday by the state auditor show that the state had a $210 million surplus during the budget year that ended June 30.
Republican Gov. Mike Pence says maintaining the state's cash reserve gives it a cushion against an economic downturn and protects its high credit standing. Indiana is one of only eleven states to maintain a triple-A credit rating with all three major credit rating agencies.
“We’ve closed the books on our fiscal year and the results are encouraging,” Pence said in a written statement. “Over the last two years, we invested in Hoosier priorities while living within our means. From increases in funding for infrastructure, child protection, and education to enacting the largest state tax cut in Indiana history, we put Hoosiers and their families first."
State reports show tax revenue was about 1 percent less than projected for the past year, during which state agencies returned about $133 million.
Democrats say the Pence administration is hoarding money to reach an unnecessary surplus level while ignoring important needs around the state.