State revenue tops lowered target

2014-01-08T14:32:00Z 2014-01-08T20:36:38Z State revenue tops lowered targetBy Dan Carden dan.carden@nwi.com, (317) 637-9078 nwitimes.com
January 08, 2014 2:32 pm  • 

INDIANAPOLIS | State revenue rebounded last month, easily surpassing the reduced monthly target that budget officials adopted Dec. 20 after falling short four times since July.

Indiana's December revenue totaled $1.32 billion. That's $43.1 million, or 3.4 percent, more than the latest revenue forecast.

It's also $14.5 million more than expected by the April revenue forecast that was adjusted for being too optimistic.

The state's two largest revenue sources -- sales taxes and personal income taxes -- topped expectations under both the old and new revenue forecasts.

Sales tax revenue totaled $569.2 million, or $10.7 million (1.9 percent), above the December forecast. The $432.3 million in income tax revenue was $24.9 million (6.1 percent) more than predicted.

Currently, total revenue for the 2014 budget year, which started July 1, 2013, is running $26.1 million, or 0.4 percent, ahead of the 2013 budget year.

Budget officials anticipate Indiana actually will take in $73.6 million less during the 2014 budget year than 2013, despite the built-in growth that should come from inflation.

Republican Gov. Mike Pence has ordered $172 million in budget cuts to preserve the state's $2 billion reserve fund in the face of that revenue drop.

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