in Indiana

Fiscal Budgets Indiana state budget and finances Tax policy in Indiana Finance Financial regulation in Indiana Pensions Public pensions in Indiana Pension health in Indiana Civil liberties Affirmative action in Indiana Campaign finance requirements in Indiana Campaign finance requirements for Indiana ballot measures Nonprofit regulation in Indiana Education Charter schools in Indiana Higher education in Indiana Public education in Indiana School choice in Indiana Elections Ballot access Ballot access requirements for political candidates in Indiana Ballot access requirements for political parties in Indiana Political parties in Indiana Ballot access requirements for presidential candidates in Indiana Redistricting in Indiana Voting in Indiana Energy andEnvironment Energy policy in Indiana Fracking in Indiana Oil and gas extraction on federal land in Indiana Endangered species in Indiana Environmental policy in Indiana Healthcare Healthcare policy in Indiana Medicaid spending in Indiana Effect of the Affordable Care Act in Indiana Immigration Immigration in Indiana

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Indiana budget and finances

General information

Budget calendar: Biennial

Fiscal year: 2017

State credit rating: AAA (as of 2017)

Current governor: Mike Braun

Financial figures

Total spending (state and federal funds): $31,406,000,000 (estimated 2016)

Per capita spending: $4,735 (estimated 2016)

Total state tax collections: $17,587,958,000 (2016)

Per capita tax collections: $2,652 (2016)

State debt: $22,463,710,000 (2014)

Per capita state debt: $3,397 (2014)

State budget and finance pages •Total state expenditures •State debt •Tax policy in Indiana

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can differ from state to state and within a state. The amounts given on this page havenot been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see theU.S. Department of Commerce, Bureau of Economic Analysis. This article, which is updated on an annual basis, was last updated in June 2017. It contains information from several sources; consequently, the currency of the information can vary from source to source.

InIndiana, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicingstate debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as theAffordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The statecredit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."^[2]
• Federal funds are "funds received directly from the federal government."^[2]
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Revenues

2016 revenues

See also:State government tax collections by source

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[3]

The table below lists 2016 tax collections by source as percentages of total collections. About 60.3 percent of Indiana's total state tax collections came from sales taxes and gross receipts.^[3]

Federal aid to the state budget

See also:Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2014, federal aid to the states accounted for roughly 31 percent of all state general revenues. Federal aid varies from state to state. For example,Mississippi received approximately $7.2 billion in federal aid in 2014, accounting for about 41 percent of the state's general revenues, the highest percentage of all of the states. By contrast,North Dakota received about $1.5 billion in federal aid in 2014, or just 17 percent of the state's general revenues, the lowest percentage in the nation.^[4]

The table below notes what share of Indiana’s general revenues came from the federal government in 2014. That year, Indiana received approximately $11.1 billion in federal aid, 33.0 percent of the state's general revenues. Taking into consideration the state's 2014 population, this came out to about $1,664 in federal aid per capita. Figures from surrounding states are provided for additional context.^[4]

Spending

Estimated 2016 expenditures

See also:Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2016 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.^[5]

The total estimated government spending in Indiana in fiscal year 2016 was $31.4 billion.

Spending by function

See also:State spending by function as a percent of total expenditures

State spending in Indiana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2015 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.^[5]

In fiscal year 2015, education accounted for 36.6 percent of Indiana's total expenditures.

Spending trends

The table below details the spending trends in Indiana in previous years. Figures are rendered as percentages, indicating the share of the total budget spent per category.^[1][6][7]

State debt

See also:Indiana state debt

State debt refers to any debt owned by a state government. Debt may include any financial obligations a state has that have not been paid, such as bonds issued by state governments, money borrowed by a state government that has not been repaid, or post-retirement benefits promised to state employees. According to the U.S. Census Bureau,Indiana had a debt of $22,463,710,000 in fiscal year 2015. The state debt per capita was $3,397. This ranked Indiana 15th among the states in debt and 21st in per capita debt. The total state debt owned by the 50 states was $1.15 trillion with a per capita debt of $3,582.^[8]

Economic indicators

See also:Economic indicators by state

Indiana's GDP increased by 0.4 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[9][10][11]

In 2013, about 12 percent of Indiana residents earned incomes below the poverty level, the lowest percentage among neighboring states. Between 2011 and 2013, Indiana's median annual household income was $48,178. The state's unemployment rate in September 2014 was just below the national rate.^{[12][13][14][15]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:^[16]

1. Inearly Summer of the year preceding the beginning of the new biennium, budget instructions are sent to state agencies.
2. BySeptember 1, agencies submit their budget requests to thegovernor.
3. Hearings are held with the public fromNovember toApril.
4. The governor submits his or her budget to thestate legislature inJanuary.
5. The legislature typically adopts a budget inApril, effective for the fiscal biennium beginning inJuly. A simple majority is required to pass a budget.

There are no constitutional or statutory provisions mandating that the governor submit or sign a balanced budget. Budget deficits may be carried over to the next biennium.^[16]

Indiana is one of six states in which the governor cannot exerciseline item veto authority.^[16][17]

Offices, and committees

There are three major standing committees in theIndiana State Legislature that deal with budget and finance matters: theHouse Ways and Means Committee, theSenate Appropriations Committee and theSenate Tax and Fiscal Policy Committee.^[18]

Fiscal duties in Indiana are split between the Indiana Office of Management and Budget (OMB), thestate auditor and thestate treasurer.^[19][20]

TheIndiana State Auditor is the chief financial officer of the state and is responsible for the following:^[21]

• accounting for all of the state's funds
• overseeing and disbursing county, city, town, and school tax distributions
• paying the state's bills
• paying the state's employees
• administrating Indiana’s Deferred Compensation Plan

Public Interest Research Group 2016 report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based inWashington, D.C., released its annual report on state transparency websites in April 2016. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Indiana received a grade of A+ and a numerical score of 100, indicating that Indiana was "Leading" in terms of transparency regarding state spending.^[22]

Budget and finance ballot measures

Voting on state and local government budgets, spending, and finance
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
Local City budgets County budgets Spending limits School budgets

See also:Spending and finance on the budget andList of Indiana ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Indiana.

1. Indiana Public Question 1, Balanced Budget Amendment (2018)

Budget and finance legislation

The following is a list of recent budget and finance bills that have been introduced in or passed by theIndiana state legislature. To learn more about each of these bills, click the bill title. This information is provided byBillTrack50 andLegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Recent news

The link below is to the most recent stories in a Google news search for the termsIndiana budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

• Historical Indiana budget and finance information
• Tax policy in Indiana
• Indiana government sector lobbying
• Indiana public pensions
• Governor of Indiana
• Indiana State Senate
• Indiana House of Representatives
• Indiana State Legislature

Footnotes

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