Porter comments on rosy revenue forecast

As this year's legislative session begins to wind down, state Rep. Gregory W. Porter (D-Indianapolis) celebrated the positive turn taken by the final revenue forecast before the state biennial budget is finalized by budget writers.

Major takeaways from the forecast include:

• ·         The updated April 2023 forecast shows a total increase from the December 2022 forecast in forecasted combined revenue of $1.5 billion over the biennium. Forecasters anticipate a windfall of $386.4 million in SFY 2023, $540.4 million in SFY 2024 and $578.5 million in SFY 2025.
• ·         All of the big three taxes collected by the state (sales, individual income and corporate income) have and are projected to have continued positive growth for the remainder of SFY 2023 as well as SFY 2024 and 2025.
• ·         As for the Medicaid forecast, SFY 2023 will have an unexpended surplus of $569.1 million. This unspent appropriation for all intents and purposes in the final analysis will further increase the state combined balance. Combining the increases in forecasted revenue and the unspent Medicaid appropriation will lead to a combined amount of $2.074.3 billion that the state will have to spend or save to grow the budget surplus.
• ·         Fundamentals of the economy remain strong at the national and state levels, and employment remains strong with wage growth still increasing. Inflation continues to decrease and consumers remain confident in the economy.

Porter offered the following statement on the revenue forecast and its impact on budget negotiations:

“Last summer, no one would have predicted this outcome: $2 billion in unanticipated funds, no recession and decreasing inflation. We can't miss this moment, this opportunity, to invest in the people. Expanding private school vouchers to families making $225,000, as I suspect House Republicans will want to do, would be a missed opportunity. No, now is our window of opportunity to fully fund the Governor's Public Health Commission funding request, fully fund Senate Bill 1 and make strides toward universal pre-K. I've been in the game long enough to know that these rosy forecasts don't come around every year – sometimes they signal that we need to cut back. When we get a positive sign like this, we need to act on it immediately. Hoosiers need and want transformative investments that will improve their quality of life.”