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Indiana finishes fiscal year with surplus, but corporate income taxes shrink

July 13, 2018

State officials say Indiana closed out the fiscal year that ended in June with about $1.8 billion in its reserves even though the state again collected fewer corporate income taxes than the previous fiscal year.

State Auditor Tera Klutz praised Indiana's fiscal condition during Thursday's announcement, saying the state continues "to live within our means and remain fiscally conservative."

Indiana's sales and income taxes grew during fiscal year 2018, but corporate tax revenue was $318 million less than the previous year and $100 million less than projected, The Journal Gazette of Fort Wayne reported.

That's the third straight year corporate tax revenue has dropped year over year.

The state's $1.785 billion reserve is equal to 11.3 percent of the current year's expenditures. That percentage has fallen from 14.3 percent in fiscal year 2016.

The state reported a budget surplus for the year of more than $100 million. The governor plans to use $25 million from the surplus to help the struggling Department of Child Services.

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