AUDITOR OF STATE CONNIE NASS RELEASES SIXTH EDITION
OF “REPORT TO INDIANA CITIZENS ON THE STATE’S FINANCES”
Report examines 2002 fiscal year end Surplus figures, state funding of state supported colleges and universities, and reliability of revenue forecasting.

INDIANAPOLIS - Auditor of State Connie Nass has released her sixth biannual Report to Indiana Citizens on the State's Finances. Auditor Nass' office began publishing the Report at the end of the 2000 calendar year.

This edition sets forth the General Fund and Property Tax Replacement Fund Surplus (Surplus) for FY2003 ($690 million), explains why the Surplus is so much higher than the true fiscal health of Indiana state government would indicate, and compares the Surplus numbers to prior years. The Report also examines the Surplus as a percentage of Operating Revenue, as well as Sales Tax, Individual Income Tax, and Corporate Income Tax revenues over the past three fiscal years.

The center pages of this edition of the Report provide a detailed description of the Surplus calculation and the forecasts for fiscal years 2004 and 2005 under the biennial budget signed by the Governor last Spring. Those pages furthermore examine the history of the original revenue forecasts for the past three fiscal years as compared to actual revenues received. The original forecasts overestimated revenues by an average of $747 million per year.

Finally, the report includes a summary of the financial contributions paid by the state to state supported colleges and universities.

"These Reports attempt to keep Hoosiers informed of the true status of the State's finances. Indiana citizens have a right to expect honest, unfiltered information from their leaders," stated Nass. "Each report also strives to assemble data that constituents request on a regular basis in an easy to understand format."

The Report to Indiana Citizens on the State's Finances provides an enhanced understanding of State government's current financial picture. Anyone interested may view a copy of the Report online at www.in.gov/auditor, or may request that a copy be mailed to them by calling (317) 232-3300.