Porter remains “eternal optimist” following revenue forecast
State Rep. Gregory W. Porter (D-Indianapolis) issued the following statement regarding the most recent revenue forecast, which shows a slightly slowing economy:
“Luckily, despite the continued general uncertainty and apprehensiveness about the performance of the national economy over the course of the last few months, it seems Indiana has stuck a 'soft landing' when it comes to our updated Revenue Forecast and the money our state is anticipated to receive over the course of the remaining 18 months or so of the 2023 budget period.
“With high inflation and interest rates, the ending of federal stimulus dollars, the recently enacted state tax cuts and a slowing economy, Hoosiers have rightfully be on edge when it comes to their personal and the state's financial well-being. Thankfully, out of an approximate $22 billion general fund budget, forecasted revenues will only be down an approximate -1.6% in 2024, and even lower, -0.5%, in 2025. Luckily, despite this reduction in revenue, the state will be able to 'make budget,' so to speak.
“Again, as I have mentioned before, the economy is cyclical and we still have not suspended the business cycle. Our economy will have ups and downs. We all prefer the ups we have recently benefited from with multi-billion dollar surpluses, but we also have to live with the downs and it is indeed great news that the down has not been too down.
“Even though we are slightly down now per our forecast, we are for all intents and purposes probably returning to a new normal of more moderate growth that will enable us to continue on our current budget trajectory.
“I remain the eternal optimist and subsequent to this forecast, I see bright green shoots of the economy emerging since the Federal Reserve just a few days ago has paused further interest rate hikes for now and will potentially start lowering interest rates in 2024. This will hopefully result in more homes being sold and furnished in late 2024 and early 2025, which adds significant sales tax revenue for our coffers and could potentially add more money to our forecast the next time around next December.”