August Was Another Down Month For Indiana Revenue
Indiana’s tax collections continue to struggle in the early part of the fiscal year.
Indiana collected about $28 million less in taxes than expected in August, putting the state more than 1.5-percent below projections for the fiscal year that began just two months ago.
Sales tax revenues continued to be strong, but individual income tax collections scuffled, $12.5 million less than projected. And corporate tax collections – the bright spot of the last fiscal year – remain down, missing the mark in August by $13 million -- though Budget Director Brian Bailey says that’s because the state last month paid out more in refund payments than it took in.
Bailey told the State Budget Committee last month that the governor is asking Indiana’s public universities and colleges to cut 2-percent from their budgets for the second consecutive year. Bailey says the money will be returned, but only if state revenues are ahead of expectations by June.