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Daniels Announces $2 Billion Surplus & Taxpayer Refunds

Indiana Governor Mitch Daniels today announced that state coffers will show a $2 billion surplus at the end of the fiscal year, kicking in a taxpayer refund of $100 for individuals and $200 for couples who qualify.

Daniels said today that since reserves total at least 14 percent of the state’s budget, most Hoosier taxpayers will receive their first automatic taxpayer refund when they file their state taxes in 2013.

His administration says the exact amount will not be ascertained until the fall when the estimate will be made of how many tax returns will qualify.  Because the state’s reserves exceed 10 percent of the upcoming year’s budget, half of the excess will be returned to taxpayers and the other half will go to further strengthen several of the state’s pension funds. That means the pension funds, already rated among the nation’s most secure, will receive at least $300 million.  For Fiscal Year 2013, the state is projecting a structural surplus of more than $400 million, resulting in the state’s reserves again exceeding $2 billion.

Audio from today’s news conference can be found here.  Daniels declined to say whether any of the excess surplus should be used to pay for the expansion of Medicaid, which could cost Indiana up to $3 billion over the next six years.  The Governor said that question is one for the future Governor and General Assembly.

And in response to complaints from schools and local governments regarding cuts, Daniels said they are free to go to the legislature and ask for those funds back next year.

 

Posted: 07|3|12 at 3:44 pm by Abdul Hakim-Shabazz
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  • cynical sam

    I will, of course, believe it when I receive it.  The question will be: what is the strength of the USD at that point in time. 

    One would think that someone from a DC budget office might do  a better job of forecasting.  These peaks and valleys are becoming tiresome.

  • Rico

    uh…..where’s Think Again. I’m worried.

  • Rico

    ??

  • Over fed

    What kind of money does the fed owe citizens?  www.wnd.com/2012/07/and-finally-the-irs-gets-audited/

  • Pascal

    The $2 Billion debt Indiana contracted to alter its unemployment compensation fund into a bloated welfare scheme would seem to have some claim for adjustment. Was it the Republican policy to load massive welfare costs onto employers?   It seems to me that the fund, prior to its being bloated and extended in payouts was maybe $2 Billion in the Black.  So, whatever the real numbers it is close to a $4 Billion flipping to be laid, of course, at the legislature.  Picking up debts for no benefit might be a turn off for enticing new employers to Indiana-they should be exempted.

  • SP-T

    Not impressed.   A refund (on paper) of $100.00 when taxes are filed.  30% or more will be taken away for taxes leaving a piddily $70.00.   The money should be used to help counties  in state that need it…  

  • Randy Moodispaugh

    I have to agree…put the money is some kind of interest bearing account and then annually give that interst accumulation to either schools or some other organization that needs it. 

  • Joe

    Pascal — the UI Trust Fund deficit was addressed by the legislature two years ago — the deficit will be erased over a several year period through higher employer taxes.  It has gone down from $2.1 billion owed the feds to $1.7 Billion….and will likely be fully paid off in 3-4 years…..Daniels does not have to worry about this cause the funds to repay the feds are coming from these employer taxes and not the general fund — so he can help fix the pension funds and give rebates to taxpayers etc. 

  • Pascal

    It is good to know that $4 billions blown is so easily remedied and that raising taxes in a depression or recession was such a good idea as was conflating unemployment with welfare.  It used to be UC was somewhere like 8 or 12 weeks NOT TWO YEARS, and the benefit levels were such that the unemployed tended to seek work.   We understand the explanation given out to the public, Joe.  We are just looking behind it and suggesting that when our dildoes enact welfare they should tap the general fund for the welfare portion of their tinkering.