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Contact: Mike Frick
Phone: (317) 233-9817
Email:
mfrick@auditor.in.gov
For Immediate Release: July 17, 2008
Indiana Budget is Balanced Third Straight Year
29 States are in the Red - Including all of our Neighbors
Indianapolis (July 17, 2008) - State Auditor Tim Berry today announced that Indiana achieved the third balanced budget in a row, without a state tax increase. Auditor Berry closed the books for the fiscal year ending June 30 with revenue exceeding expenditures by $321.4 million.

State agencies exercised spending restraint and prudent fiscal management and reduced the rate of expenditure growth from 4.8% as passed by the General Assembly to 3.9%. Since 2005 Governor Daniels has limited annual spending growth to 2.8%, less than half the rate of growth in the prior eight years of 5.9%. This also compares favorably to the national average rate of growth for all states in 2008 at 5.1%.

"Balanced budgets do not occur by accident. Governor Daniels has implemented measures to control spending that have achieved sound results," said Auditor Berry.

The General Fund/Property Tax Replacement Fund (GF/PTRF) combined balance is now more than $1.4 billion, still within the adequate reserve range of 10%-12%. As part of Governor Daniels property tax relief plan, Indiana will be absorbing in excess of $1 billion in vital services for school operations, county welfare and police and fire pension obligations from local government during the current fiscal year. These reserves are vital in providing the commitment to adequately funding these services.

"Twenty-nine states, including all of our surrounding neighbors, are experiencing fiscal difficulties while Indiana continues to have prudent reserves," stated Berry. "Other states are looking at raising taxes or drastically cutting vital services, but Indiana has balanced the budget through sound fiscal management and constrained spending without a tax increase."

Strong financial health has enabled Indiana to:

  • Accelerate the repayment of payment delays to local units of government (accelerated from FY 2009 to May 2008), totaling $212 million.
  • Advance the distribution of $620 million of 2008 homestead credits to Indiana counties, in most cases months ahead of schedule. These funds are a vital source of revenue for local units to provide services and reduce local borrowing, especially for counties with added burdens caused by severe storms this year.
Fiscal Year End Close Details


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