STATE HOUSE–Coronavirus has infected the state’s once $2.3 billion reserve fund. The state auditor found that Indiana has $1.4 billion to end this fiscal year. Despite a budget shortfall, Indiana is not in the red.
The takeaway for you: Coronavirus has been rough on the state budget, but the state is still doing okay, with $1.4 billion in the rainy day fund.
Because of the coronavirus pandemic, the state used about $900 million to make up for the tax money that was not collected and the income taxes that haven’t been paid yet. The state set a new deadline of July 15, which falls in the next budget year.
The fiscal year 2020 ended June 30.
The auditor, governor and others are tooting the administration’s horn, saying strong fiscal management has left the state able, and more able than many other states, to deal with the shortfalls.
“Our strong reserves have sustained Indiana through the initial surge of the pandemic, and in light of the unexpected economic circumstances, the State is able to continue to offer essential services when our residents need it most,” said State Auditor Tera Klutz. “Responsible fiscal leadership leaves Indiana with a 9 percent reserve as we head into a new fiscal year facing more economic uncertainty.”
Gov. Eric Holcomb echoed Klutz, upon reading the End of Year reports.
“As our state works to slow the spread of coronavirus, I’m grateful for the years of exceptional stewardship that has allowed Indiana to be financially prepared to face this storm. We will remain dedicated to ensuring Hoosiers receive services without interruption while maintaining Indiana’s trademark fiscal responsibility as we adjust to this new normal,” he said.