Ind. budget modestly improving, could spur refunds

AP News
Posted: Dec 14, 2011 3:19 PM
Ind. budget modestly improving, could spur refunds

Indiana continues to crawl out of the recession, ever so slowly.

Analysts told the State Budget Committee on Wednesday they expect tax collections to modestly improve over the next two years as the state whittles away at its unemployment rate.

They also say that barring any action by lawmakers, the state would maintain a cash reserve of roughly $1.8 billion. The additional cash would be enough to trigger Gov. Mitch Daniels' automatic tax refund for Hoosiers.

However Budget Committee Chairman Jeff Espich says it is too early to say whether all that money would go to tax refunds.

About $320 million of the additional money was found late last month sitting in a state account. Committee Democrats sought an independent audit but were rebuffed by majority Republicans.