Budget questions could easily eat at $2.2B reserve - 13 WTHR Indianapolis

Budget questions could easily eat at $2.2B reserve

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INDIANAPOLIS -

Indiana's large cash reserves might have some Hoosiers thinking the state can coast along for a while. But state leaders will have to deal with new problems in 2013 as they plot Indiana's next biennial budget.

Gov. Mitch Daniels amassed $2.2 billion in cash reserves and expects the state to start the year with a $500 million surplus. But automatic tax refunds to Hoosiers and payments to the teacher pension fund will eat into that reserve. Cuts in the corporate income tax and the phase-out of the inheritance tax will also eat at that number.

Outgoing House budget leader Jeff Espich says the hardest task for his successor may be saying "no" to the myriad demands for new spending and tax credits.

Copyright © 2012 The Associated Press. All rights reserved. This story may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.

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