Indiana Posts Better Than Expected Numbers from Fiscal Year
Indiana Posts Better Than Expected Numbers from Previous Fiscal Year
INDIANAPOLIS – The state closed fiscal year 2025 with roughly $2.5 billion in state reserves.
State Budget Director Chad Ranney said on Tuesday that Indiana finished the budget year last month with a general revenue surplus of $336.9 million. That figure is down from the $577 million budget predicted by analysts in December, but significantly better than projections in April.
“Indiana continues to demonstrate that disciplined budgeting and reliable forecasting can deliver steady results,” said Director Ranney. “The sustained stability of our annual surplus reinforces that our fiscal outlook remains strong heading into FY 2026.”
According to Ranney though, the state is still on track for a $2 billion revenue shortage over the next two budget years. State budget analysts estimate a revenue surplus of $424.6 million for Fiscal Year 2026, which began July 1, and then down to $270.2 million for FY 2027, which starts next July.
Those projections were a factor in state lawmakers’ opting to cut spending in the budget that they approved during this year’s legislative session. Those predictions were also based on uncertainty from tariffs implemented by President Donald Trump and the potential of The One Big Beautiful Bill, signed by the president on July 4.
Some Indiana Democrats believe the new federal budget will have a negative financial impact on Indiana. Democratic Rep. Gregory Porter said the legislation will lead to cuts in important areas.
“Still don’t know, totally, what it’s going to do, but we know it isn’t for us,” Rep. Porter said. “We know we’re going to have cuts. We’re going to have cuts in Medicaid. We’re going to have cuts in services.”
Democratic Rep. Ed DeLaney added to the fears from Indiana Democrats about the state’s budget moving forward, saying there’s a great amount of uncertainty.
“I think we’re in purgatory,” said Rep. DeLaney. “We have the lowest amount of our surplus that we’ve had in our last three budgets and it’s against a higher expenditure level.”
Indiana State Comptroller Elise Nieshalla credited “strong, conservative leadership” for the state’s financial stability.
“Hoosiers can rest assured that Indiana continues to be in a solid financial position,” said State Comptroller Elise Nieshalla. “Despite a lower-than-expected revenue forecast, Governor Braun and the state legislature’s disciplined approach to forecasting, combined with making needed adjustments in spending, positioned us to close the year with a reserve of 11 percent of expenditures.”
Indiana’s reserve breakdown detailed in the year-end fiscal report:
$1.1 billion Rainy Day Fund
$706 million Tuition Reserve
$676 million General Fund
$41 million Medicaid Contingency & Reserve
