Post by Ash on Apr 6, 2009 23:48:41 GMT -5
State tax revenues continue crash
Bad news comes as GOP prepares budget
proposal
Updated: Monday, 06 Apr 2009, 6:43 PM EDT
Published : Monday, 06 Apr 2009, 1:22 PM EDT
Jim Shella
Edited by Andrew Bonner
INDIANAPOLIS (WISH) - State tax collections fell again in March, the fourth month in a row that state government income failed to meet predictions. If the current trend continues, Indiana will experience the largest year-to-year decline of state income tax revenues in history.
The overall March numbers show a 15-percent drop from last year.
The $87 million one-month shortfall is 9.5 percent below a revenue forecast created just last December. Continuing bad news about the Indiana economy comes as Republicans in the state Senate plan to unveil a new two-year budget proposal on Thursday.
The chief architect of that budget, Senator Luke Kenley (R) of Noblesville, is planning for more bad news.
"We're actually anticipating another billion-dollar loss over the two years of the biennium, so we've tried to account for that," said Sen. Kenley.
House Speaker Pat Bauer (D) pointed to the March numbers as he renewed a call for spending the state rainy day fund in a state stimulus program to create jobs.
"The continuing loss of revenue, somewhere in the vicinity of $80-plus million in one month, calls for a one-year budget," said Speaker Bauer.
No one knows if the Indiana economy has hit bottom yet. But Sen. Kenley still believes that the surplus can be protected and a two-year budget drafted.
"Only because we have these federal stimulus dollars for Medicaid and education, which are clearly being used to shore up our budget," said Kenley.
That could all change when a revised forecast of state tax revenues comes out next week.
It means that the Indiana economy has not yet hit bottom. State Budget Director Chris Ruhl said Monday that when it does, the recovery will be slow.
Bad news comes as GOP prepares budget
proposal
Updated: Monday, 06 Apr 2009, 6:43 PM EDT
Published : Monday, 06 Apr 2009, 1:22 PM EDT
Jim Shella
Edited by Andrew Bonner
INDIANAPOLIS (WISH) - State tax collections fell again in March, the fourth month in a row that state government income failed to meet predictions. If the current trend continues, Indiana will experience the largest year-to-year decline of state income tax revenues in history.
The overall March numbers show a 15-percent drop from last year.
The $87 million one-month shortfall is 9.5 percent below a revenue forecast created just last December. Continuing bad news about the Indiana economy comes as Republicans in the state Senate plan to unveil a new two-year budget proposal on Thursday.
The chief architect of that budget, Senator Luke Kenley (R) of Noblesville, is planning for more bad news.
"We're actually anticipating another billion-dollar loss over the two years of the biennium, so we've tried to account for that," said Sen. Kenley.
House Speaker Pat Bauer (D) pointed to the March numbers as he renewed a call for spending the state rainy day fund in a state stimulus program to create jobs.
"The continuing loss of revenue, somewhere in the vicinity of $80-plus million in one month, calls for a one-year budget," said Speaker Bauer.
No one knows if the Indiana economy has hit bottom yet. But Sen. Kenley still believes that the surplus can be protected and a two-year budget drafted.
"Only because we have these federal stimulus dollars for Medicaid and education, which are clearly being used to shore up our budget," said Kenley.
That could all change when a revised forecast of state tax revenues comes out next week.
It means that the Indiana economy has not yet hit bottom. State Budget Director Chris Ruhl said Monday that when it does, the recovery will be slow.