Indiana’s tax collections continue to struggle in the early part of the fiscal year, coming in nearly three percent below expectations last month.
Indiana collected about $28 million less in taxes than expected in August, putting the state more than one and a half percent below projections for the fiscal year that began just two months ago.
Sales tax revenues continued to be strong, but individual income tax collections scuffled, $12.5 million less than projected. And corporate tax collections – the bright spot of the last fiscal year – remain down, missing the mark in August by $13 million, though Budget Director Brian Bailey says that’s because the state paid out more in refund payments than it took in last month.
Bailey told the State Budget Committee at the time that the governor is asking Indiana’s public universities and colleges to cut two percent from their budgets for the second consecutive year. Bailey says the money will be returned, but only if state revenues are ahead of expectations by June.
