State Budget Agency

Zach Herndon / WTIU

 

In response to a nearly $1 billion revenue shortfall due to the novel coronavirus, Gov. Eric Holcomb announced plans to reduce agency appropriations for the next fiscal year – with additional maintenance and capital projects on the chopping block. 

State agencies are being asked to review operations, space, travel and hiring to cut their budgets by 15 percent.

Through nine months of the current fiscal period, Indiana tax collections have only met the budget plan’s expectations three times. (Lauren Chapman/IPB News)
Brandon Smith

Indiana tax collections fell further behind the state’s budget plan last month.

Through nine months of the current fiscal period, Indiana tax collections have only met the budget plan’s expectations three times. That’s after failing to do so in March – about $48 million off the mark.

Indiana tax collections are lagging, more than $65 million below projections in the first two months of the fiscal year.  However, the state budget director says it’s not yet time for serious concern.

Indiana took in $51 million less tax revenue last month than expected, including individual income tax collections that were more than 12% below projected levels.  And that leaves the state more than 3% below where it was this time last year.