INDIANAPOLIS | What will you do with an extra hundred bucks?
State Auditor Tim Berry confirmed Thursday most Hoosier taxpayers next year will receive an additional refund of slightly more than $100 because of Indiana's $2.155 billion budget reserve.
A 2011 law requires the state to return a portion of its money to taxpayers when reserves top 10 percent of planned spending for the next budget year. Indiana ended the 2012 budget year June 30 with reserves at 15.1 percent of 2013 appropriations.
As a result, $360.6 million will be used to pre-pay teacher pension obligations and an additional $360.6 million will be returned to about 3.2 million income tax payers.
The exact value of the refund will be determined by early October, Berry said. A line on next year's 2012 income tax forms will instruct taxpayers to deduct the refund from their tax obligation, resulting in either a larger refund or less money owed to the state.
Berry officially closed the books on the 2012 budget year Thursday. Between July 1, 2011, and June 30 Indiana took in $14.257 billion in revenue and spent $13.578 billion. The state started the budget year with $1.124 billion in reserve and has $351.6 million in its "rainy day" fund.
Total state revenue grew 6.4 percent compared with the 2011 budget year, led by $404.3 million in additional revenue from sales taxes — the state's largest revenue source. However, revenue from riverboat casino taxes was down $32.5 million, or 6.1 percent, versus 2011.
Even after paying the taxpayer refund, Indiana is projected to end the 2013 budget year in June with reserves of $2.007 billion, or 13.7 percent of spending, thanks to continued revenue growth.