State Budget Forecast Significantly Lower Than Expected

A new Indiana revenue forecast projects the state will collect nearly 400-million dollars less in tax revenue than lawmakers expected when they approved the 32-billion dollar budget last April.

Officials told the State Budget Committee Monday that 70-percent of the anticipated revenue reduction is due to a sharp decline in corporate income tax collections since the budget year began in July.

David Reynolds…a senior fiscal analyst for Senate Republicans…says it’s clear that the revenue won’t increase as more businesses claim all the state tax credits they’re entitled to and take them immediately as refunds, rather than applying them to future tax liabilities.

There’s been no comment yet from the Governor’s office on the latest projections.