With revenue collections exceeding projections each month by an average of 15%, the state’s fiscal year-end budget surplus is now projected to be over $6 billion, which is over twice the percentage recommended by economists and national fiscal policy experts for fiscal prudency.
Governor Holcomb, in consultation with legislative leaders from his party, has pledged to use $1 billion of Indiana’s surplus on taxpayer refunds amid the current inflation crisis. This will be formalized during a special session of the General Assembly, which is set to convene on July 6. These new $225 rebates for each taxpayer would be on top of the $125 in taxpayer refunds (estimated cost of $535 million) already scheduled to be issued as part of the state’s automatic trigger once the state is flush with X amount of cash.
The Indiana Chamber understands the inclination to assist Hoosiers during this trying time for many; yet the reality is that the rebates will have no impact beyond some minor immediate relief. Instead, what we are focusing on is what can be done to better the lives of Hoosiers and employers long term with the very robust state surplus that remains.
We need investments to address Indiana’s poor education, workforce, per capita income and health metrics, which are especially glaring relative to our competitor states. Such action will have a positive effect on Hoosiers for generations to come. Strong consideration and immediate attention should be given to addressing these deficiencies in the 2023 General Assembly.
The Indiana Chamber has already started these conservations with the Governor and legislative leaders, and this summer we are finishing the related research and finalizing our priority policies that we believe will be transformative for businesses and citizens alike. We will share that list with you in the lead-up to next year’s session.
Resource: Kevin Brinegar at (317) 264-6882 or email: kbrinegar@indianachamber.com
