Christmas is here and it’s an exciting time to be with loved ones and enjoy holiday traditions. December also brought great news for Hoosier taxpayers.
More than 4 million Hoosiers will receive a $125 refund after they file their 2021 taxes, because the state’s excess reserves triggered an automatic taxpayer refund. In Indiana, state reserve balances in excess of 12.5% of the next year’s budget is required to be split with half dedicated to pay down pension obligations and the other half given back to taxpayers. About $545 million will go to taxpayers and another $545 million toward pension liabilities.
The financial future continues to look bright for Hoosiers. Recently, the state’s revenue forecast revealed Indiana is expected to collect about $3.3 billion more in revenue over the next two years than what was originally projected. Total reserves could exceed $5 billion at the end of fiscal year 2022.
We now find ourselves in the position to consider responsible tax cuts this legislative session, while continuing to fund critical services and maintain healthy reserves. This would truly be a gift for Indiana’s economic future.
Indiana continues to invest in its communities as well. Recently, the state awarded $50 million to Gibson, Posey, Vanderburgh and Warrick counties as part of a new, innovative state grant aimed at increasing quality of life and attracting top talent. This is a great opportunity for our area to work together and invest in the people and businesses that already call Indiana home, while also planning for growth.
This past year was full of victories for Hoosier taxpayers and I expect 2022 to be great as well. If you would like to share feedback on upcoming legislation, feel free to reach out to me at h78@iga.in.gov or 317-232-9815.
