INDIANAPOLIS -Senate Democrat Leader Vi Simpson (D-Ellettsville) cautioned that state leaders should not panic over state revenue figures released today. She said the October state revenue numbers were below forecast, but the degree of loss is less than in the month of September.

"This is a serious problem, but we shouldn't panic," Simpson said. "This month's report clearly indicates that we need to make a bigger commitment to put people back to work in Indiana. That is what the 2010 legislative session must be about - preserving and creating jobs.

"The governor is taking the right steps to reduce state expenses, but cutting state agencies is only half of the equation. We need to increase revenues, specifically focusing on individual income tax revenues."

Individual income tax collections fell $31.6 million, or 13%, below forecast for the month of October, making up a significant portion of the overall $46.1 million in revenue that the state failed to take in as expected.

Simpson also noted the shortfall in state sales tax revenue, which fell $15.4 million, or 8.5%, below the monthly forecast. "The state sales tax collection was below forecast again this month, but it showed an improvement over the past two months. The holiday shopping season is ahead of us, so I think we should wait and see how consumer spending is affected by that."

Simpson served on the State Budget Committee from 1998 to 2007 and continues to be active in matters of state fiscal policy in her role as Senate Democrat Leader.

For more information on Sen. Simpson or updates on Senate activities visit www.senatedemocrats.in.gov.

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NOTE TO EDITORS: More details on the October state revenue report can be found on the State Budget Agency website at http://www.in.gov/sba/files/revreport_october2009.pdf.

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