Post by DOCr on Jul 17, 2009 15:51:28 GMT -5
Indiana state government keeps $1.3B surplus intact
Bruce Kopp/Eyewitness News
Indianapolis - In tough economic times, Indiana is standing out among the states with a hefty balance in reserve.
State Auditor Tim Berry was delighted to talk about Indiana's bottom line Friday, pointing to charts that highlighted the Hoosier State among those in good financial shape.
"There are others hiding under desks," he said.
Indiana reserves inched up $26 million at the end of the fiscal year. The state's reserves stood at more than $1.3 billion. Only about $55 million of that was in its main checking account, the primary fund the state uses to pay its bills. The rest was in reserves.
Spending cuts and federal stimulus money were critical in helping Indiana make ends meet over the past year. Gov. Mitch Daniels cut spending by $530 million over the year, and used $884 million in federal stimulus money to help ends meet without dipping into reserves. But declining tax revenues are expected to whittle the state's surplus down to about $1 billion by the end of the current two-year budget cycle in June 2011.
Berry displayed a map showing Indiana as one of only five states nationwide that did it without raising or even discussing a tax hike.
"Indiana is in an enviable position. If Indiana were a stock, it would be a buy," Berry said.
While those who watch over the state's financial books are proud of the Indiana budget surplus, there are still looming items that threaten the family budgets of of Indiana taxpayers. The latest round of tuition increases at the state's biggest universities will cost families hundreds more dollars over the next two years. Unemployment over ten percent is a constant threat. Problems within Indiana's privately run welfare program are among the largest economic storm clouds.
But for now, the state's auditor is assuring taxpayers the state is positioned to withstand the continued economic downturn.
Bruce Kopp/Eyewitness News
Indianapolis - In tough economic times, Indiana is standing out among the states with a hefty balance in reserve.
State Auditor Tim Berry was delighted to talk about Indiana's bottom line Friday, pointing to charts that highlighted the Hoosier State among those in good financial shape.
"There are others hiding under desks," he said.
Indiana reserves inched up $26 million at the end of the fiscal year. The state's reserves stood at more than $1.3 billion. Only about $55 million of that was in its main checking account, the primary fund the state uses to pay its bills. The rest was in reserves.
Spending cuts and federal stimulus money were critical in helping Indiana make ends meet over the past year. Gov. Mitch Daniels cut spending by $530 million over the year, and used $884 million in federal stimulus money to help ends meet without dipping into reserves. But declining tax revenues are expected to whittle the state's surplus down to about $1 billion by the end of the current two-year budget cycle in June 2011.
Berry displayed a map showing Indiana as one of only five states nationwide that did it without raising or even discussing a tax hike.
"Indiana is in an enviable position. If Indiana were a stock, it would be a buy," Berry said.
While those who watch over the state's financial books are proud of the Indiana budget surplus, there are still looming items that threaten the family budgets of of Indiana taxpayers. The latest round of tuition increases at the state's biggest universities will cost families hundreds more dollars over the next two years. Unemployment over ten percent is a constant threat. Problems within Indiana's privately run welfare program are among the largest economic storm clouds.
But for now, the state's auditor is assuring taxpayers the state is positioned to withstand the continued economic downturn.