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Indiana misses revenue mark for first time in over a year, still comfortably ahead of budget

The Indiana Statehouse seen from the west side, between two state government center buildings. The Statehouse is at the end of a long walkway, with greenery running down the center.
Lauren Chapman
/
IPB News
Through three months of the 2023 fiscal year, Indiana is more than $400 million ahead of its state budget needs.

Indiana tax collections came in below projections last month, for the first time in more than a year.

But state budget expert said that missed projection is mostly a timing issue.

The state bases its tax collection expectations on occasional revenue forecasts. The last one of those was in December. And Indiana revenues last month came in about $82 million lower than that forecast expected. That’s more than 4 percent off the mark – and the first time Indiana has failed to exceed expectations since July 2021.

But state budget analysts said almost all of that is because of a delay in processing income tax payments. Those funds, which should’ve been recorded in September, will instead show up on the state’s books in October. And that delay accounts for about $70 million of that $82 million shortfall.

READ MORE: Lawmakers send $1 billion tax cut package to governor's desk

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The state says the rest can be chalked up to the legislature repealing two utility taxes during its last session (which wasn’t accounted for in that December forecast).

Still, Indiana is way ahead of its current state budget – more than $400 million better than needed through just three months of the fiscal year.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

Brandon Smith has covered the Statehouse for Indiana Public Broadcasting for more than a decade, spanning three governors and a dozen legislative sessions. He's also the host of Indiana Week in Review, a weekly political and policy discussion program seen and heard across the state. He previously worked at KBIA in Columbia, Missouri and WSPY in Plano, Illinois. His first job in radio was in another state capitol - Jefferson City, Missouri - as a reporter for three stations around the Show-Me State.