INDIANAPOLIS —
The State of Indiana has ended its fiscal year with a bonus for taxpayers: An automatic refund of at least $100 next year.
Indiana Gov. Mitch Daniels announced that news at a press conference Tuesday, crediting a surplus of state revenues that kicks a new law into effect: Whenever the state collects a certain amount of more money than it needs to meet its yearly budget, a portion of that extra cash goes back into the pockets of Hoosiers.
The state is still closing out its books for the fiscal year that ended June 30. But Daniels said the preliminary information he’s received indicates the state will have more than $2 billion in reserves. That’s about 14 percent of the state budget and that’s enough to trigger the state’s first ever automatic taxpayer refund.
The governor said about 3 million state residents may be eligible for either the direct refund or a credit on taxes owed. Single filers should expect at least $100, while joint filers would get more than $200.
The state is also taking an equal chunk of money from the surplus — about $300 million — to put into the state’s public pension funds.
Daniels said the median amount of state income tax paid by Indiana residents is $819; that amount should go down about 10 percent next year with the refund, he said.
“There will be a double-digit discount for the typical Indiana taxpayer, sharing in the economy dividend that comes from a strong state fiscal picture,” Daniels said.
Daniels is ending his second term in office in December, before taking his new job as president of Purdue University.
He said it had been his mission to put Indiana on a strong financial footing.
“We thought this was a fundamental assignment of our administration — to turn over to our successors the strongest possible position,” Daniels said.
Exactly what the state’s fiscal picture looks like won’t be known for about another week, when state Auditor Tim Berry releases the final financial report.
The surplus comes in part from money reverted back from state agencies that were instructed by the governor to return a certain percentage of their budget back to the state’s coffers to help offset what has been declining revenues due to the recession.
Indiana law gives Daniels the power to make those cuts, and he’s exercised that power for several years. He declined to say how much of the surplus comes from cuts to state agencies. State budget officials said most agencies gave back about 3 percent about what had initially been approved by the Legislature. In past years, the reversions have been much bigger.
Daniels’ announcement triggered sneering comments from the Democratic House Minority Leader Patrick Bauer of South Bend. “Congratulations to Gov. Daniels for hitting his magical $2 billion in surplus and giving $100 tax credits to Hoosiers,” Bauer said in a press release. “Nevertheless, one has to ask, ‘What were the human costs paid in order to achieve this goal?”
Bauer zeroed in on cuts made in the past, including those made to K-12 education and the state’s Department of Child Services. And he was critical of mistakes made by state budget officials who last year admitted they’d lost track of about $320 million in corporate income tax revenue and earlier this year revealed they’d failed to distribute $206 million in local income tax revenues to counties.
“Taxpayer refunds are good,” Bauer said. “We proposed them long ago. However, $100 per taxpayer is less than $2 per week. It buys only about a half gallon of gasoline each week. The question has to be asked, “How much more are you paying for other necessities?”
Daniels, though, defended his decisions to push the state into frugal spending, saying it’s put Indiana in a position of being one of the few states that hasn’t engaged in deep deficit spending. He made reference to the neighboring state of Illinois, which currently has a $43 billion budget deficit.
“We made a different choice and I think it was the right one,” Daniels said.
Maureen Hayden covers the Statehouse for the CNHI newspapers in Indiana. She can be reached at maureen.hayden@indianamediagroup.com.
State News
State surplus triggers automatic taxpayer refund
- State News
-
-
Indiana’s high school grad rate continues upward
Indiana’s reported high school graduation rate continues to improve, moving from 77 percent to more than 88 percent in less than a decade, but there are still significant achievement gaps marked by race and income.
-
Schools chief Ritz on fast learning curve
For many occupants of the Indiana Statehouse, the week after the General Assembly wraps up its final frenzy of work is a quiet one. But not for Glenda Ritz.
-
Out of office, Lugar shuns retirement
One year ago, Indiana’s longest serving U.S. senator was rejected by Republican primary voters and forced into an unwelcome retirement from a distinguished political career that spanned 46 years. But at 81, former U.S. Sen. Richard Lugar is hardly in a resting mode.
-
Lugar wary of Syria involvement
Former U.S. Sen. Richard Lugar has been out of office since early January, but he’s still being sought after for his opinion about foreign policy matters he once helped shape.
-
Budget deal includes little funding for criminal code reform
Facing the end-of-session deadline, Indiana legislators moved forward on a bill to overhaul the state’s criminal sentencing laws but left undone the issue of where local communities will get the money to implement it.
-
Legislators closing in on final budget
In his first four months as the chief budget maker in the Indiana House, Republican Rep. Tim Brown hasn’t been surprised by the long hours, multiple demands and intense debate that goes with crafting a $30 billion spending plan.
-
New poll shows voters tepid on Pence tax plan
With just days to go before the deadline for a final budget bill, a new independent poll shows Republican Gov. Mike Pence may not have gotten much mileage for his travels around the state pitching his 10 percent tax cut plan.
-
DOC hopes ‘cold case’ cards lead to solved cases
Indiana state prison officials are using customized playing cards for a deadly serious purpose: To help unlock the mysteries of unsolved murders and persons gone missing.
-
Indiana attorney general says Congress must act on immigration reform
Amidst concerns that the Boston Marathon bombing may derail federal action on comprehensive immigration reform, Indiana Attorney General Greg Zoeller is turning up some collective heat on Congress to move ahead.
-
Disagreements stall criminal code reform bill
Negotiations over the final language in a bill that rewrites Indiana’s criminal code may come down to the last week of the legislative session.
-
Indiana’s high school grad rate continues upward
Raw: Widespread Destruction in Moore, Okla.
Raw: Massive Funnel Clouds in Oklahoma
Raw: Japan's WWII Atrocities Under Fire in Seoul
Voters Could Elect LA's First Female Mayor
Huge Tornado Kills Dozens Near Oklahoma City
Raw: Rescuers Pull Tornado Survivors to Safety
Oklahoma Gov: 'Hearts Are Broken' After Tornado
Raw: Walking in a Flattened Okla. Neighborhood
Raw: Rescue Workers Search Oklahoma School
Raw: Witness Describes Scene After Okla. Tornado
Raw: Aftermath of Massive Tornado in Oklahoma
Raw: House Burns After Massive Oklahoma Tornado
Raw: Tornado on the Ground in Oklahoma
Split-second Choice Ended With NY Student Dead
White House Backs 'Shield Law' for Media
Wave of Attacks Kills Scores in Iraq
Pug Life on Display at Wisconsin Festival
Company Promises to Make All Snail Mail Digital
Analyst: Tumblr Fills Void in Yahoo's Offerings
