The state’s fiscal year ended on June 30, and overall, our finances are in excellent shape, especially when compared to the rest of the nation. Because of legislation we enacted, and due to our state’s reserves are over 10 percent half of the extra reserves will go to Hoosier taxpayers who will be receiving their first automatic taxpayer refund in 2013. Next year, when Hoosier taxpayers file their state returns, they will receive at least a $100 credit for a single filer or a $200 credit for a joint return. The other half of the extra reserves will go to fund state employee pensions for individuals such as state police, conservation officers, judges, prosecutors and the Pension Stabilization Fund which helps fund pensions for teachers. This positive outcome is mainly due to the strong fiscal discipline we’ve shown as a state for the last two years. During the recession, when families had to live within their means, the state followed suit. There were three main actions taken that we can credit these extra reserves to. The first is that the FY 2012 revenues exceeded the December 2011 forecast amount by $50 million. Second, state agencies outperformed the 3 percent reserve targets required by the governor and returned about $127 million more to state coffers than expected. Finally, the Hospital Assessment Fee enacted by the General Assembly in 2011 brought in about $106 million more in FY 2012 than we had counted on receiving this fiscal year. These actions allowed Indiana’s current fiscal state to be one of the healthiest in the nation. This fact also saves taxpayers additional money. Because of our positive fiscal condition, Indiana remains one of only nine states in the nation to enjoy a triple-A bond rating from all three major credit rating agencies. This advantage alone saves taxpayers millions of dollars. Our strong fiscal discipline has also allowed Indiana to lead the nation in private sector job growth. We have created more jobs than much larger states like Texas and California, and this has shined a spotlight on the Hoosier State. National economic development experts have taken notice, and publications such as Chief Executive magazine, Area Development magazine and Site Selection magazine have all reaffirmed Indiana’s ranking as the best state in the Midwest and one of the top ten states in the nation in which to do business. Recent analyses from both Forbes magazine and CNBC show that the cost of doing business in Indiana is the lowest in the Midwest and among the ten lowest in the nation. Additionally, the Tax Foundation ranks Indiana’s tax climate best in the Midwest and eleventh nationally. As Vice Chairman of the House Ways and Means Committee, I am very pleased to see the results of our efforts paying off and creating and retaining jobs for Hoosiers. My colleagues and I have worked to create an environment that brings investment to our state, and I look forward to seeing further positive results of these actions. -30- State Rep. Suzanne Crouch (R-Evansville) |
