News From Terre Haute, Indiana

July 3, 2012

Daniels touts tax credit from $2B Indiana surplus


Associated Press

INDIANAPOLIS — Gov. Mitch Daniels is touting state cash reserves he says will send an additional $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 would go to 2013’s tax credits and another $300 million would go toward the state’s unfunded teacher pension liability.

Final numbers won’t be available for at least another week as state budget leaders continue wrapping up the fiscal year that ended Saturday.

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.