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STATEWIDE--The state of Indiana fell short of its revenue goal for the second straight month in November. The Indiana State Budget Agency says that that General Fund revenues last month totaled nearly $1.4 billion, which was 3.2% lower than the April 2023 forecast but 1.2% higher than the same month last year.
“I don’t sense there is a collective concern as we head into 2024 in the forecast, though,” said Gerry Dick, President of Inside Indiana Business, on Tony Katz and the Morning News Monday morning.
Dick says he’s talked with many economists, especially ones at the IU Kelley School of Business who believe that if there is a recession in 2024, it will be “mild.”
An updated state revenue forecast, however, is supposed to be presented December 19 to the State Budget Committee.
If revenues fall short of goals, that can prompt spending cuts in order to keep the state’s budget balanced. The State Legislature convenes a nine-week session starting January 8. Budget changes don’t typically happen, though, during the short session.
One thing the IU economists are concerned about is productivity in Indianapolis.
“The economists say Indianapolis is doing an above average job of adding jobs, but they’re not the kinds of jobs that are needed to boost productivity, things like engineering, technology, and science,” said Dick.
Dick says with IUPUI being separated into two schools in 2024, leaders at both institutions hope to produce more of those kinds of jobs in Indiana.
