The second half of Indiana’s fiscal year got off to a slow start.
January tax collections struggled in all the major categories.
The first half of the fiscal year ended on a high, with strong December revenues. But they fell back to earth last month. Sales, corporate and individual income tax collections all came in under projections in January.
State budget analysts stress that monthly fluctuations are common. They urge taking a wider view at longer trends. And through seven months of the fiscal year, almost all of Indiana’s tax sources are outperforming expectations.
But taking the wider view paints a less-than-rosy picture of individual income tax collections. That revenue stream has missed the mark five of the year’s seven months. And it’s $55 million below projections for the entire fiscal year.