INDIANAPOLIS – As of 9:30 a.m. today, Auditor of State
Connie Nass’ office officially closed Indiana State Government’s
books for Fiscal Year 2004 (July 1, 2003 through June 30, 2004),
as scheduled. Indiana State Government had a $505.2 million
Surplus on June 30, 2004. The Surplus equaled a cash balance
reserve of 4.70% of operating revenues. Indiana’s $505.2
million Surplus was $184.5 million less than reported at the
end of Fiscal Year 2003, and $1.486 billion less than the 1999
Surplus of $1.991 billion.
“Indiana’s 2004 Surplus was truly a one-night-only
event,” stated Auditor Nass. “For the first time
in memory, the Surplus was insufficient to cover the payment
delays which for the last three fiscal years have been used
to prop up the Surplus statement.”
Without the delay of various payments to schools and local
governments, Indiana’s 2003 Surplus would have been $28
million. That number was significant in 2003 because the delays
made the 2003 Surplus $168 million greater than 2002, even though
state government’s overall fiscal position had deteriorated
by $122 million that year.
“Even without the payment delays, at least Indiana government
ended Fiscal Year 2003 in the black,” commented Nass.
“Unfortunately, at the end of Fiscal Year 2004, we cannot
take comfort in the numbers because without the 2004 payment
delays and a $50 million no-interest loan from the Public Deposit
Insurance Fund, Indiana government’s Surplus was $256.9
million in the red on June 30, 2004.”
FY 2003 & 2004 GENERAL & PROPERTY TAX REPLACEMENT
FUND SURPLUS
| |
FY 2003 |
FY 2004 |
Difference |
Calculated Surplus (General Fund) |
136,564,535 |
200,000 |
(136,364,535) |
Reserve for Tuition Support |
305,000,000 |
290,500,000 |
(14,500,000) |
Rainy Day Fund |
248,141,592 |
214,521,865 |
(33,610,727) |
TOTAL STATE SURPLUS |
$689,706,127 |
$505,221,865 |
$(184,484,262) |
Payment Delays |
(661,807,538) |
(712,101,061) |
(50,293,523) |
Loan Payable to PDIF (by statute) |
- |
(50,000,000) |
(50,000,000) |
REVISED SURPLUS |
$27,898,589 |
$(256,879,196) |
$(284,777,785) |
The Auditor of State maintains the centralized accounting records
of Indiana State Government (Indiana Code 4-13-2-7). The records
are kept through three main functions: (1) the payment system,
(2) the payroll system, and (3) the general ledger, which is
the official financial record for all of state government. As
part of this responsibility, Auditor Nass’ office annually
closes the financial records of the State.
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