Wednesday’s report by Moody’s Analytics warns that doing nothing to address the economic perils of state cutbacks could cost millions of jobs. But it also says that significantly less federal aid is needed than what’s being called for by House Democrats.
Tax revenues for fiscal year 2020 were already off by $1.2 billion by the end of May, an amount that is expected to grow to $1.7 billion to $1.8 billion before the fiscal year ends June 30.
Indiana Gov. Eric Holcomb’s administration continues to make budget cuts as the state prepares for revenue collections possibly being $2 billion lower than expected by the end of the fiscal year.
Gov. Eric Holcomb said the budget agency is estimating that Indiana could take in $3 billion less than expected during the last two months of fiscal year 2020—which ends June 30—and fiscal year 2021.
Gov. Eric Holcomb announced Friday during his press briefing that cities, towns and counties will be eligible for a certain portion of the $300 million based on population.
State officials said Friday that they expect to receive $2.4 billion in federal rescue funds that will help make up for budget shortfalls.
The Coronavirus Aid, Relief, and Economic Security Act, which President Donald Trump signed into law on March 27, provided $2 trillion in economic aid for business, hospitals and governments struggling with the impact of the pandemic.
Cris Johnston, director of the Office of Management and Budget, said agencies have been told to look for places where they can eliminate spending. But he said there are no plans to cut funding for schools, even though it’s the state’s largest expenditure.
The vote came Monday after several failed attempts by House Democrats to amend the legislation and use the money for teacher pay bonuses and other “human capital” proposals, such as pre-kindergarten education and school safety.
Like Gov. Eric Holcomb, Indiana Senate and House Republicans are focused on health care, education and spending one-time dollars on capital projects this year. But lawmakers have slightly different views on how those surplus dollars should be spent.
The state is expecting an additional $531 million in revenue over the next biennium, according to a forecast released Friday. The additional dollars would bring reserves up to $2.4 billion in 2020 and $2.6 billion in 2021.
Indiana ended the fiscal year with record-high reserves, it reported Thursday, prompting Gov. Eric Holcomb to propose spending nearly $300 million on five one-time projects.
The mayor’s office says the strategy is a way to meet the city’s growing infrastructure needs—which amount to $160 million per year—without raising taxes. But the proposal would create winners and losers among area counties, even as it addresses what’s considered a regional problem.
Jennifer McCormick, the state superintendent of public instruction and a Republican, said financial backing for mental health services didn't receive the attention it warranted.
Superintendent Jennifer McCormick said Monday the $19 million annual funding included in the new two-year budget will help, but cast doubts on whether it was adequate to cover costs for safety equipment, school police officers and threat assessment.
State and local leaders seem to agree that Indiana’s Regional Cities Initiative was successful—but don’t expect to see another round of funding for the program anytime soon, if ever.
The 2019 legislative session ended April 24—five days ahead of the statutory deadline—with hundreds of bills sent to Gov. Eric Holcomb for his consideration.
Indiana's governor signed a new two-year budget Monday and pledged to work to restore some of the money lawmakers trimmed from his proposal to boost funding for the state's child welfare agency if the amount ends up being insufficient.
Purdue President Mitch Daniels had urged state lawmakers to approve funding for the new hospital, saying it's vital to Purdue's veterinary college and the state.
The Indiana General Assembly ended the 2019 legislative session Wednesday night after passing a $34.6 billion two-year budget with an emphasis on K-12 school funding.
