Declining collections eat away at fiscal footing - 13 WTHR Indianapolis

Declining collections eat away at fiscal footing

Updated:
INDIANAPOLIS -

Indiana's fiscal picture still looks strong one year after former Gov. Mitch Daniels left the state with $2 billion in cash reserves, but an unexpected downturn in tax collections could keep lawmakers cautious during their upcoming session.

State budget leaders received a new estimate last week that tax collection will come in short $298 million over the next two years. And unexpected hits like the loss of tobacco settlement money have cut into the money state leaders have to work with.

It could prove troubling for Republican Gov. Mike Pence's second-year legislative agenda. The governor is seeking a $1 billion local tax cut that may require state aid to backfill local budgets. He is also seeking new spending to expand educational vouchers.

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