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Indiana tax collections stall again ahead of new revenue forecast

Travis Holdman is seated, speaking into a microphone that he's holding in one hand, while gesturing with the other. Holdman is a White man, balding with white hair, and wearing glasses and a suit.
Brandon Smith
IPB News
Sen. Travis Holdman (R-Markle) said the first quarter of 2024 will be the "telltale sign" for where the economy is headed.

After 29 consecutive months of state revenues that outperformed budget expectations, Indiana collections have now fallen short two months in a row.

Two months of subpar revenue collections have left Indiana $116 million short of where the state budget expected it to be, though that’s less than 2 percent off the mark and there are seven months to go in the fiscal year.

Sen. Travis Holdman (R-Markle) said revenue collections should prompt some caution.

“I think we just need to be cautious and holding back on state agency spending until we get to that first quarter of 2024,” Holdman said. “I think that’ll be the telltale sign of where the economy is going to land.”

READ MORE: Where does Indiana state budget funding come from?

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Sales taxes are, perhaps, the big worry. Sales tax collections have been below expectations for eight consecutive months.

State fiscal analysts explain away some of that by noting that the state this year began shifting gasoline sales tax dollars out of the General Fund, contributing to the lower-than-expected figures on the revenue sheet.

Brandon is our Statehouse bureau chief. Contact him at 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.