Indiana government fiscal leaders say the state remains in a solid financial position as they closed the books on the last fiscal year Tuesday.
But while Indiana finished its fiscal year in the black, fears remain about the financial future.
Fiscal leaders say there were times the last couple of months they thought Indiana would end its fiscal year with a revenue deficit. But due in part to the timing of tax payments, State Comptroller Elise Nieshalla said Indiana ended with $336 million more than it spent — and $2.5 billion in reserve.
"Hoosiers can remain confident that our financial footing is stable, despite a year marked by economic fluctuations," Nieshalla said.
Going forward, State Budget Director Chad Ranney said his office will analyze the potential impact of the recent federal tax and spending cut package on state finances.
"At the moment, there's quite a bit of uncertainty," Ranney said.
Ranney said budget reserves will ensure the state can maintain "high level of services."
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Gov. Mike Braun framed the fiscal closeout as good news. But Democrats said the state is in budget purgatory amid uncertainty about the impact of the recent federal bill.
Sen. Fady Qaddoura (D-Indianapolis) said a balanced budget is a good thing. But he questioned the fiscal priorities of Republican leaders at both the state and federal level.
"It unfortunately shifts the support and the incentives to corporations and to wealthy families or wealthy individuals, at the same time that it's really neglecting and leaving behind the most vulnerable in our communities," Qaddoura said.
Braun said he's not worried about the impact of Medicaid or Supplemental Nutrition Assistance Program, SNAP, cuts in the federal legislation.
"If we're enterprising ourselves, we'll find ways — even if it puts more burden on us — to do it better and more efficiently," Braun said.
In a statement, Sen. Ryan Mishler (R-Mishawaka), the Senate's budget architect, said he remains "cautiously optimistic regarding Indiana's fiscal standing," following the fiscal closeout.
The House budget architect, Rep. Jeff Thompson (R-Lizton), echoed Mishler's comments, saying in a statement "We will continue seeking ways to improve government efficiency and make sure we're living within our means, just like Hoosier families have to do."
Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.
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