Comptroller Reports $3.99 Billion in Reserves at Fiscal Year ’26 Close

STATEHOUSE — The state of Indiana ended the fiscal year with a 60% increase in reserves.

According to a report from Indiana Comptroller Elise Nieshalla, the state had a $1.86 billion surplus, closing the 2026 fiscal year with $3.99 billion in reserves.

“Indiana’s fiscal position is undoubtedly strong, and we responsibly navigated a time of uncertainty, reflecting both Governor Braun and the General Assembly’s focus on active budget management and economic growth,” said Comptroller Nieshalla. “Hoosiers can count on the State of Indiana to manage fluctuating factors and still stay in the black with a surplus, due to our state’s constitutional requirement to pass balanced budgets.”

The report shows that the state’s reserves, including the rainy day fund, Medicaid reserve, and tuition reserve, make up 17.6% of state-funded expenditures. That’s equal to about 63 days of funding.

“In today’s economic landscape, fiscal health isn’t just about static numbers on a spreadsheet — it’s about operational agility,” Indiana Secretary of Management and Budget Lisa Hershman said. “Indiana’s proactive planning and fiscal discipline ensure our state remains nimble while delivering exceptional, uninterrupted service to Hoosiers. Because we have done the hard work, Indiana is open for business, prepared for what’s next, and will continue to deliver the highest possible value to our taxpayers.”

In fiscal year 2026, Indiana received $2 billion in federal funds, 10% less than in the prior year. The decrease could be attributed to the nearly $2 trillion in annual deficit spending and $39 trillion of debt for the federal government.

Indiana’s fiscal year-end reserves are as follows:

$1.86 billion Surplus Balance
$274.8 million Medicaid Reserve
$719.7 million Tuition Reserve
$1.14 billion Rainy Day Fund

“We are concluding this fiscal year on a highly stable footing, which provides an excellent operational launchpad as we enter the next biennial budget cycle,” said State Budget Director Chad Ranney. “The State Budget Agency will continue pushing state agencies to aggressively eliminate operational redundancies and curb unnecessary spending. Closing the books successfully is a brief milestone; our continuous focus is the long-term structural health of Indiana’s finances over the next three to five years.”