Tue July 3, 2012
Daniels: State To Have $2 Billion Reserve; Taxpayer Refunds Coming
Information for this story also came from the Associated Press
Indiana Gov. Mitch Daniels is touting state cash reserves he says will send more than $100 to each Indiana taxpayer through automatic tax credits next year.
Daniels said today he expects the state to close its books for the fiscal year with $2 billion in cash reserves.
Roughly $300 million will go to 2013's tax credits and another $300 million will go toward the state's unfunded teacher pension liability.
He says it will be up to the next administration and lawmakers to decide how to manage the rest of the money.
"I make no suggestion what they do with this strong financial picture that they will inherit. The point is they will have flexibility to invest, spend, cut taxes (or) some mix of all of those," he said.
The cash reserves have come from a mix of three major factors--improved tax collections, spending cuts to state agencies and an error in which the Daniels administration discovered $320 million in untouched tax collections.