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Indiana state budget (2011-2012)

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Note: This article was last updated in 2012. Click here for more recent information on state budgets and finances.

The state ended fiscal year 2012 with a reserve balance totaling $2.15 billion, an amount equal to 15.9 percent of expenditures. The state received $383 million, or 2.8 percent, more in revenue than it anticipated in fiscal year 2012, and it spent $275 million less than was anticipated in the budget that was passed in April 2011.[1]

The surplus money was set to flow back to the state, with $360 million used to further strengthen INPRS pensions and another $360 million slated to go toward the Automatic Taxpayer Refund, meaning that each taxpayer would get more than $100 in 2013.[1][2]

A report released on August 3, 2011 by the State Budget Agency showed that the state had received $23 million more in tax revenues than expected for the first month of fiscal year 2012, which was 2.3 percent more than was projected in an April forecast that legislators used when drafting the state budget.[3]

Budget as passed

On April 29, 2011, the Indiana state legislature approved a two-year budget of $28.3 billion total.[4] Before passage of the budget, the state faced a $1 billion gap between the state's revenue and expenses, including the need to build up reserves by $500 million.[5] Governor Mitch Daniels signed the budget into law on May 10, 2011.[6]

Education spending

For fiscal year 2012, Indiana devoted 32.3 percent of its total spending to K-12 education, down from 34.0 percent in fiscal year 2009.[7]

Fiscal year Total spending[8] Education spending[9] Percent education spending
2009 $51.2 billion $17.0 billion 33.2%
2010 $51.7 billion $17.2 billion 33.2%
2011 $52.3 billion $17.6 billion 33.6%
2012 $18.4 billion $25.3 billion 33.8%

Right-to-work and legislative walkout

On February 22, 2011, amid a protest by 4,000 against House Bill 1216 that would limit collective bargaining, Democrats in the Indiana House of Representatives did not appear for the vote.[10]

The walkout by Democrats prevented action on the bill because a two-thirds majority was needed for a quorum.[11] On March 3, 2011, Republican House members moved to fine missing Democrats $250 a day beginning on March 7, 2011, and increased that figure to $350 per day on March 21, 2011.[12]The Democrats' absence prevented the House from voting on House Bill 1468, the "Right to Work" bill that would have given members of private-sector unions the right to opt out of unions and not pay dues.[11]

In Indiana at the time, all employees covered by a contract were required to belong to the union if a union bargained for a group of employees at a workplace.[13] The bill would have barred unions and companies from negotiating a contract that requires non-union members to pay fees.[14]

Governor's proposed budget

Governor Daniels' budget proposal called for spending $13.76 billion in fiscal year 2012, and about $13.98 billion in fiscal year 2013. At the end of the biennium, the state would have a surplus of about $725 million.[15]

Footnotes

  1. 1.0 1.1 year 2012_year_end_close.pdf Indiana Auditor of State, "Indiana State Government Reports $2.15 Billion Reserve Balance," July 12, 2012
  2. The Indianapolis Star, "Even with hefty surplus, budget questions loom for Indiana," July 29, 2012
  3. Businessweek, "Indiana tax revenues better than expected for July," August 3, 2011
  4. The Louisville Courier Journal, "Indiana lawmakers pass two-year state budget," April 29, 2011
  5. [The Chicago Tribune, "Ind. governor, lawmakers eyeing insurance fund," December 29, 2010]
  6. Forbes, "Ind. gov signs 80 bills into law, including budget," May 11, 2011 (dead link)
  7. State Budget Solutions, "Throwing Money At Education Isn't Working," September 12, 2012
  8. USGovernmentSpending.com, "Indiana Government Spending Chart - Total Spending," August 4, 2012
  9. http://www.usgovernmentspending.com/spending_chart_1997_2017ALb_13s1li111mcn_20t USGovernmentSpending.com, "Indiana Government Spending Chart - Education Spending," August 4, 2012
  10. NPR "State Budget Fights - Wednesday, Feb. 23rd Edition," February 23, 2011
  11. 11.0 11.1 The Wall Street Journal, "Indiana Democrats Block Action on Union Bill," February 22, 2011
  12. Cite error: Invalid <ref> tag; no text was provided for refs named return
  13. The Wall Street Journal, "Political Fight Over Unions Escalates," February 22, 2011
  14. The Indianapolis Star, "Exodus: Dems trigger Statehouse showdown," February 22, 2011
  15. The Indianapolis Star, "Daniels presents state budget; cuts target higher ed, Medicaid," January 13, 2011