INDIANAPOLIS - Auditor of State Connie Nass has released her eleventh biannual
Report to Indiana Citizens on the State's Finances. “While Indiana government’s finances
continue to struggle, we ended the 2005 calendar year with mixed news. Even though
the first half of the 2006 fiscal year Surplus balance is a negative $335 million, the good
news is that this number is $646 million higher than on the same date last year, ” said
Nass.
Sales tax revenues remain the most reliable and largest revenue source. I ndividual
income taxe s remain the most inconsistent and have followed up a great FY2004 with a
first half slump in FY2005. Another revenue program provided a much need boost.
“The good news on the revenue front, along with continued 5% growth in sales tax
receipts, was the Tax Amnesty Program,” commented Nass. “Tax Amnesty generated
nearly $200 million in cash in the door in 2005, with the pledge of more to come in 2006.
This money provides your government with a much needed shot in the arm and should
help increase the tax rolls moving forward.”
The Report provides an ana lysis of revenues and expenditures over ten fiscal years from
1996 through 2005. In that time welfare became the largest component of expenditures,
surpassing education in 2002. The report concludes with a two page report of state
revenue trends, including details on the “Big Four” sources of tax revenue – sales taxes,
individual income taxes, corporate income taxes, and riverboat wagering taxes.
The Report to Indiana Citizens on the State's Finances provides an enhanced
understanding of State government's current financial picture. “Indiana citizens deserve
an honest depiction of where we stand. That is why each Report strives to assemble and
present data in an easy to understand format,” stated Nass.
Copies of the Report may be viewed online at www.in.gov/auditor, or may be mailed to
those who call (317) 232- 3300.
