(Indianapolis, IN) - A local state lawmaker is thanking a large budget surplus for keeping Indiana from going belly-up in these uncertain times. State Representative Jim Pressel says saving for a rainy day, or a global pandemic, has really paid off.
As of March, Indiana held a nearly $2.4 billion surplus. As of August 1, Pressel says, that was down to $1.4 billion and dropping. But the total financial impact, he says, may still be felt more than a year from now. "We probably won't see the full impact of it until 2022, so it's that far in the distance." Pressel says. "When we go back into session, we're probably only going to start with maybe between $500 million and $700 million in reserves."
Pressel says the money drain comes from both COVID-relief efforts and the shortfall from decreased tax revenues. With many state services, ranging from health care to law enforcement and everything in between, bills still have to be paid. The cushy surplus helps pay them. But it won't be cushy for long.
