Historical Indiana budget and finance information

in  Indiana

* Fiscal
* Budgets
* Indiana state budget and finances
* Tax policy in Indiana
* Finance
* Financial regulation in Indiana
* Pensions
* Public pensions in Indiana
* Pension health in Indiana
* Civil liberties
* Affirmative action in Indiana
* Campaign finance requirements in Indiana
* Campaign finance requirements for Indiana ballot measures
* Nonprofit regulation in Indiana
* Education
* Charter schools in Indiana
* Higher education in Indiana
* Public education in Indiana
* School choice in Indiana
* Elections
* Ballot access
* Ballot access requirements for political candidates in Indiana
* Ballot access requirements for political parties in Indiana
* Political parties in Indiana
* Ballot access requirements for presidential candidates in Indiana
* Redistricting in Indiana
* Voting in Indiana
* Energy and Environment
* Energy policy in Indiana
* Fracking in Indiana
* Oil and gas extraction on federal land in Indiana
* Endangered species in Indiana
* Environmental policy in Indiana
* Healthcare
* Healthcare policy in Indiana
* Medicaid spending in Indiana
* Effect of the Affordable Care Act in Indiana
* Immigration
* Immigration in Indiana

* * *

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

* * *

The historical Indiana budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding Indiana's budget and finances, click here.

## Contents

* 1 As published 2016
* 1.1 Definitions
* 1.2 Revenues
* 1.2.1 2014 revenues
* 1.2.2 Federal aid to the state budget
* 1.3 Spending
* 1.3.1 Estimated 2015 expenditures
* 1.3.2 Spending by function
* 1.3.3 Spending trends
* 1.4 Fiscal year budgets
* 1.4.1 Fiscal years 2016 and 2017
* 1.5 State debt
* 1.5.1 Taxpayer burden
* 1.5.2 Public pensions
* 1.5.3 Credit ratings
* 1.6 Economic indicators
* 1.7 Budget process
* 1.7.1 Offices, and committees
* 1.7.2 Transparency
* 2 As published 2015
* 2.1 Spending
* 2.1.1 Definitions
* 2.1.2 2014 expenditures
* 2.1.3 Spending by function
* 2.1.4 Spending trends
* 2.2 Revenues
* 2.2.1 2013 revenues
* 2.3 State debt
* 2.3.1 Public pensions
* 2.3.2 Credit ratings
* 2.4 Federal aid to the state budget
* 2.4.1 Stimulus
* 2.5 Budget process
* 2.5.1 Agencies, offices, and committees
* 2.6 Studies and reports
* 2.6.1 U.S. PIRG "Following the Money" report
* 3 As published 2014
* 3.1 Spending
* 3.1.1 Definitions
* 3.1.2 2013
* 3.2 Spending by function
* 3.2.1 2012
* 3.3 Spending trends
* 3.4 Revenues
* 3.4.1 2013 revenues
* 3.4.2 Revenue trends
* 3.5 Historical spending
* 3.6 Budget transparency
* 3.6.1 Government tools
* 3.6.2 Support for creation of the database
* 3.6.3 Multi-measure budget transparency profile
* 4 Prior fiscal year budgets
* 4.1 Fiscal years 2016 and 2017
* 4.2 Fiscal years 2014 and 2015
* 4.3 Fiscal year 2013
* 4.4 Fiscal year 2012
* 4.5 Fiscal year 2011
* 4.6 Fiscal year 2010
* 4.7 See also
* 4.8 Footnotes

# As published 2016[edit]

Indiana budget and finances

General information
Budget calendar:
Biennial
Fiscal year:
2017
State credit rating:
AAA (as of 2014)
Current governor:
Mike Pence
Financial figures
Total spending (state and federal funds):
$29.3 billion (estimated for 2015)
Per capita spending:
$4,432.54 (estimated for 2015)
Total state tax collections:
$16.8 billion (2014)
Per capita tax collections:
$2,553.39 (2014)
State debt:
$46.4 billion
Per capita state debt:
$7,094

* * *

* * *

State budget and finance pages • Total state expenditures • State debt • Tax policy in Indiana

In Indiana, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

* Between fiscal years 2014 and 2015, total government spending in Indiana increased by approximately $2.1 billion—from $27.3 billion in fiscal year 2014 to an estimated $29.3 billion in 2015. This represents a 7.10-percent increase.[1][2][3]

* In Indiana in fiscal year 2014, 61.7 percent of total tax revenues came from sales taxes and gross receipts. Income taxes accounted for 34.2 percent of total state tax collections.

* Education accounted for 38.6 percent of state expenditures in fiscal year 2015, while 32.0 percent went to Medicaid.

The Indiana state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

### Definitions[edit]

The following terms are used to describe a state's finances:

* Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
* Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
* State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
* The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
* State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."[4]
* Federal funds are "funds received directly from the federal government."[4]
* Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

## Revenues[edit]

### 2014 revenues[edit]

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.[5]

Compared to neighboring states, Indiana had the third highest state tax collections per capita, at $2,553.

State tax collections by source ($ in thousands), 2014

State  | Property taxes  | Sales and gross receipts  | Licenses  | Income taxes  | Other taxes  | Total  | 2013 population  | Per capita collections
Indiana | $8,052 | $10,395,150 | $590,483 | $5,763,064 | $90,212 | $16,846,961 | 6,597,880 | $2,553
Illinois | $54,710 | $15,758,509 | $2,675,943 | $20,343,042 | $350,690 | $39,182,894 | 12,882,189 | $3,042
Michigan | $1,919,910 | $12,309,564 | $1,511,695 | $8,755,723 | $307,081 | $24,803,973 | 9,916,306 | $2,501
Ohio | N/A | $15,617,920 | $2,928,276 | $8,424,843 | $49,586 | $27,020,625 | 11,596,998 | $2,330
Wisconsin | $159,069 | $7,359,539 | $1,040,619 | $7,779,733 | $71,965 | $16,410,925 | 5,759,432 | $2,849
United States | $14,232,835 | $411,414,175 | $51,120,024 | $357,104,785 | $31,880,270 | $865,752,089 | 318,907,401 | $2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Indiana tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 61.7 percent of Indiana's total state tax collections came from sales taxes and gross receipts.[5]

State tax collections by source (as percentages), 2014

State  | Property taxes  | Sales and gross receipts  | Licenses  | Income taxes  | Other taxes
Indiana | 0.0% | 61.7% | 3.5% | 34.2% | 0.5%
Illinois | 0.1% | 40.2% | 6.8% | 51.9% | 0.9%
Michigan | 7.7% | 49.6% | 6.1% | 35.3% | 1.2%
Ohio | N/A | 57.8% | 10.8% | 31.2% | 0.2%
Wisconsin | 1.0% | 44.8% | 6.3% | 47.4% | 0.4%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

### Federal aid to the state budget[edit]

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.[6]

The table below notes what share of Indiana’s general revenues came from the federal government in 2013. That year, Indiana received approximately $11.2 billion in federal aid, 33.4 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $1,703 in federal aid per capita. Figures from surrounding states are provided for additional context.[6]

Federal aid to state budgets, 2013

State  | Total federal aid ($ in thousands)  | Federal aid as a % of general revenues  | Ranking (by % of general revenues)  | Est. 2013 population  | Aid per capita
Indiana | $11,192,452 | 33.4% | 20 | 6,570,902 | $1,703
Illinois | $16,973,577 | 25.9% | 40 | 12,882,135 | $1,318
Michigan | $17,829,882 | 32.8% | 23 | 9,895,622 | $1,802
Ohio | $20,482,575 | 33.6% | 19 | 11,570,808 | $1,770
Wisconsin | $8,952,020 | 27.7% | 36 | 5,742,713 | $1,559
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016
United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016
Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

## Spending[edit]

### Estimated 2015 expenditures[edit]

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[2]

Indiana's total estimated government spending in fiscal year 2015 was $29.3 billion, which was the second lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)

State  | State funds  | Federal funds  | Total spending  | Population  | Per capita spending
Indiana | $19,037 | $10,305 | $29,342 | 6,619,680 | $4,432.54
Illinois | $51,506 | $17,904 | $69,410 | 12,859,995 | $5,397.36
Michigan | $31,232 | $22,633 | $53,865 | 9,922,576 | $5,428.53
Ohio | $48,593 | $13,994 | $62,587 | 11,613,423 | $5,389.19
Wisconsin | $34,275 | $11,122 | $45,397 | 5,771,337 | $7,865.94
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates.[7]
Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

### Spending by function[edit]

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in Indiana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[2]

In fiscal year 2014, K-12 education accounted for 32 percent of Indiana's total expenditures.

State spending by function as a percent of total expenditures, FY 2014

State  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Trans-
portation  | Other
Indiana | 32.0% | 6.6% | 1.5% | 32.0% | 2.8% | 5.9% | 19.2%
Illinois | 14.6% | 4.1% | 0.3% | 26.1% | 2.4% | 9.3% | 43.1%
Michigan | 26.9% | 4.3% | 0.5% | 27.6% | 4.4% | 7.5% | 28.7%
Ohio | 16.8% | 4.2% | 1.3% | 35.8% | 3.0% | 6.3% | 32.5%
Wisconsin | 16.1% | 14.2% | 0.4% | 18.4% | 2.8% | 6.6% | 41.5%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

### Spending trends[edit]

Between 2010 and 2014, the share of the Indiana state budget spent on Medicaid increased from 23.1 percent in 2010 to 32.0 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[2][8][9]

Spending by function from 2010 to 2014 (as percentages)

Year  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
2014 | 32.0% | 6.6% | 1.5% | 32.0% | 2.8% | 5.9% | 19.2%
2013 | 30.8% | 6.1% | 1.4% | 31.2% | 2.7% | 8.3% | 19.6%
2012 | 32.9% | 6.5% | 1.5% | 27.3% | 2.9% | 9.3% | 19.7%
2011 | 32.2% | 7.1% | 1.4% | 25.0% | 2.9% | 10.9% | 20.4%
2010 | 32.4% | 7.1% | 1.4% | 23.1% | 2.9% | 10.6% | 22.4%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

## Fiscal year budgets[edit]

### Fiscal years 2016 and 2017[edit]

See budget bill: HEA 1001

On January 8, 2015, Governor Mike Pence proposed his biennial budget for fiscal years 2016 and 2017. This budget called for general fund spending to equal about $15.14 billion in 2016 and $15.31 billion in 2017, which is a two-year average increase of 1.34 percent. The governor insisted that some of the state's funding priorities should include education, citizens in need, economic development and job creation and preparations to commemorate the state's bicentennial anniversary.[10]

Governor Pence signed the state's official budget on May 7, 2015. General fund appropriations totaled about $15.4 billion in fiscal year 2016 and $15.8 billion in fiscal year 2017, which was higher than the governor's proposed budget. The budget appropriated spending increases in education and pensions, but most other executive branch agencies received spending reductions of about 3 percent.[10]

## State debt[edit]

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Indiana had a state debt of over $46 billion. Its state debt per capita was $7,094. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounts to $16,178 per capita in the nation.[11]

Total 2012 state debt

State  | Total state debt  | State debt per capita  | Per capita debt ranking
Indiana | $46,377,635,000 | $7,094 | 48
Illinois | $321,354,115,000 | $24,959 | 5
Michigan | $142,668,026,000 | $14,435 | 25
Ohio | $321,340,764,000 | $27,836 | 4
Wisconsin | $45,026,643,000 | $7,863 | 47
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

##### Taxpayer burden[edit]

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees.

If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Indiana ranked 17th best in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Indiana’s Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $12.9 billion in promised retirement benefits were unfunded, but only $1.2 billion of these liabilities were reported on Indiana’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $5 billion, or a taxpayer burden of $2,500. [12]

### Public pensions[edit]

See also: Indiana public pensions and Indiana public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Indiana's state-administered pension plans decreased from 68.7 percent to 58.4 percent. The state paid 88 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $15.4 billion. This amounted to $2,415 in unfunded liabilities per capita.[13][14]

### Credit ratings[edit]

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[15][16]

The table below lists the Standard and Poor's credit ratings for Indiana and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[17]

State credit ratings, 2004 to 2014

State  | 2014  | 2013  | 2012  | 2011  | 2010  | 2009  | 2008  | 2007  | 2006  | 2005  | 2004
Indiana | AAA | AAA | AAA | AAA | AAA | AAA | AAA | AA+ | AA+ | AA | AA
Illinois | A- | A- | A | A+ | A+ | A+ | AA | AA | AA | AA | AA
Michigan | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA | AA | AA+
Ohio | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+
Wisconsin | AA | AA | AA | AA | AA | AA | AA | AA- | AA- | AA- | AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

## Economic indicators[edit]

See also: Economic indicators by state

Indiana's GDP increased by 0.4 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.[18][19][20]

In 2013, about 12 percent of Indiana residents earned incomes below the poverty level, the lowest percentage among neighboring states. Between 2011 and 2013, Indiana's median annual household income was $48,178. The state's unemployment rate in September 2014 was just below the national rate.[21][22][23][24]

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state

State  | Distribution of population by FPL* (2013)  | Median annual income (2011-2013)  | Unemployment rate  | Total GSP (2013)†
Under 100%  | 100-199%  | 200-399%  | 400%+  | Sept. 2013  | Sept. 2014
Indiana | 12% | 23% | 31% | 35% | $48,178 | 7.3% | 5.7% | $317,102
Illinois | 13% | 17% | 31% | 39% | $54,083 | 9.1% | 6.6% | $720,692
Michigan | 15% | 19% | 30% | 37% | $49,902 | 8.8% | 7.2% | $432,573
Ohio | 14% | 21% | 33% | 32% | $46,672 | 7.4% | 5.6% | $565,272
United States | 15% | 19% | 30% | 36% | $52,047 | 7.2% | 5.9% | $16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government."
† Median annual household income, 2011-2013.
‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state."
Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

## Budget process[edit]

State documents and agenciesBelow are links to official Indiana budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office.

* Indiana CAFR
* Indiana budget agency

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[25]

1. In early Summer of the year preceding the beginning of the new biennium, budget instructions are sent to state agencies.
2. By September 1, agencies submit their budget requests to the governor.
3. Hearings are held with the public from November to April.
4. The governor submits his or her budget to the state legislature in January.
5. The legislature typically adopts a budget in April, effective for the fiscal biennium beginning in July. A simple majority is required to pass a budget.

There are no constitutional or statutory provisions mandating that the governor submit or sign a balanced budget. Budget deficits may be carried over to the next biennium.[25]

Indiana is one of six states in which the governor cannot exercise line item veto authority.[25][26]

### Offices, and committees[edit]

There are three major standing committees in the Indiana State Legislature that deal with budget and finance matters: the House Ways and Means Committee, the Senate Appropriations Committee and the Senate Tax and Fiscal Policy Committee.[27]

Fiscal duties in Indiana are split between the Indiana Office of Management and Budget (OMB), the state auditor and the state treasurer.[28][29]

The Indiana State Auditor is the chief financial officer of the state and is responsible for the following:[30]

* accounting for all of the state's funds
* overseeing and disbursing county, city, town, and school tax distributions
* paying the state's bills
* paying the state's employees
* administrating Indiana’s Deferred Compensation Plan

### Transparency[edit]

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending.[31] According to the report, Indiana received a grade of A and a numerical score of 97, indicating that Indiana was "Leading" in terms of transparency regarding state spending.[31]

# As published 2015[edit]

* * *

* * *

State finances in the U.S.
State tax policy in the U.S.
Pension Policy

* * *

* * *

State finances on the ballot
Taxes on the ballot
Glossary of state budget terms
Public pensions

The information on this tab contains:

* Spending (fiscal years 2013 and 2014)
* Revenues (fiscal year 2013)
* State debt (fiscal year 2012)
* Federal aid to the state budget (fiscal year 2012)
* Budget process

Between fiscal years 2013 and 2014, total government spending in Indiana decreased by approximately $911 million, from $28.2 billion in fiscal year 2013 to an estimated $27.3 billion in 2014. This represents a 3.23 percent decrease. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Indiana a credit rating of AAA, the highest available.[32][33][34]

HIGHLIGHTS

* In fiscal year 2014, Indiana's estimated per capita spending ranked seventh lowest in the nation at $4,132.27.

* Over 60 percent of Indiana's tax collections in 2013 came from sales taxes and gross receipts.

## Spending[edit]

### Definitions[edit]

The following terms are used to describe a state's finances:

* Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
* Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
* State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
* The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
* State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."[4]
* Federal funds are "funds received directly from the federal government."[4]
* Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

### 2014 expenditures[edit]

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population" and "Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population" and "Per capita spending" have not been abbreviated.[34]

In Indiana, total estimated spending in fiscal year 2014 equaled $27.3 billion. Estimated per capita spending in 2013 totaled $4,132, lower than that of any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)

State  | State funds  | Federal funds  | Total spending  | Population  | Per capita spending
Indiana | $17,282 | $9,978 | $27,260 | 6,596,855 | $4,132.27
Illinois | $50,392 | $19,964 | $70,356 | 12,880,580 | $5,462.18
Michigan | $30,605 | $20,632 | $51,237 | 9,909,877 | $5,170.30
Ohio | $46,043 | $13,046 | $59,089 | 11,594,163 | $5,096.44
Wisconsin | $33,887 | $11,006 | $44,893 | 5,757,564 | $7,797.22
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates.[35]
Source: National Association of State Budget Officers

### Spending by function[edit]

See also: State spending by function as a percent of total expenditures

Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Indiana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[34]

In Indiana in fiscal year 2013, Medicaid expenditures accounted for 31.2 percent of all state spending. Elementary and secondary education expenditures accounted for 30.8 percent of all state spending. These portions were higher than any neighboring state.

State spending by function as a percent of total expenditures, FY 2013

State  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Trans-
portation  | Other
Indiana | 30.8% | 6.1% | 1.4% | 31.2% | 2.7% | 8.3% | 19.6%
Illinois | 13.3% | 3.7% | 0.3% | 23.8% | 2.1% | 8.4% | 48.4%
Michigan | 27.2% | 4.2% | 0.7% | 26.4% | 4.6% | 7.8% | 29%
Ohio | 17% | 4.3% | 1.5% | 29.2% | 3.2% | 5.1% | 39.8%
Wisconsin | 16.2% | 14.3% | 0.3% | 17.2% | 2.9% | 6.9% | 42.1%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[34]

### Spending trends[edit]

Between 2009 and 2013, the portion of Indiana's budget dedicated to Medicaid increased by 10 percentage points, from 21.8 percent to 31.2 percent. Meanwhile, spending on expenditures labeled "Other" decreased as a share of the budget by 10 percentage points, from 29.4 percent to 19.6 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[34][8][9][36][37]

Spending by function from 2009 to 2013 (as percentages)

Year  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
2013 | 30.8% | 6.1% | 1.4% | 31.2% | 2.7% | 8.3% | 19.6%
2012 | 32.9% | 6.5% | 1.5% | 27.3% | 2.9% | 9.3% | 19.7%
2011 | 32.2% | 7.1% | 1.4% | 25.0% | 2.9% | 10.9% | 20.4%
2010 | 32.4% | 7.1% | 1.4% | 23.1% | 2.9% | 10.6% | 22.4%
2009 | 28.1% | 7.3% | 1.3% | 21.8% | 2.9% | 9.2% | 29.4%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[34]

## Revenues[edit]

### 2013 revenues[edit]

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[5]

In 2013, Indiana collected $10.3 billion in sales taxes and general receipts. Individual income taxes accounted for approximately $5 billion.

State tax collections by source ($ in thousands)

State  | Property taxes  | Sales and gross receipts  | Licenses  | Individual income taxes  | Corporation net income taxes  | Other taxes  | Total  | 2013 population  | Per capita collections
Indiana | $7,008 | $10,298,491 | $699,373 | $4,976,375 | $781,585 | $167,899 | $16,930,731 | 6,570,713 | $2,576.70
Illinois | $61,806 | $14,705,739 | $2,583,108 | $16,538,662 | $4,462,627 | $363,378 | $38,715,320 | 12,890,552 | $3,003.39
Michigan | $1,954,898 | $12,268,026 | $1,454,634 | $8,239,086 | $900,667 | $265,343 | $25,082,654 | 9,898,193 | $2,534.06
Ohio | N/A | $13,636,046 | $3,445,620 | $9,869,545 | $262,226 | $117,511 | $27,330,948 | 11,572,005 | $2,361.82
Wisconsin | $148,600 | $7,088,411 | $1,035,743 | $7,227,690 | $955,752 | $66,416 | $16,522,612 | 5,742,953 | $2,877.02
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Indiana tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Indiana in 2013, sales taxes and gross receipts accounted for nearly 61 percent of total tax collections.[5]

State tax collections by source (as percentages)

State  | Property taxes  | Sales and gross receipts  | Licenses  | Individual income taxes  | Corporation net income taxes  | Other taxes
Indiana | 0.04% | 60.83% | 4.13% | 29.39% | 4.62% | 0.99%
Illinois | 0.16% | 37.98% | 6.67% | 42.72% | 11.53% | 0.94%
Michigan | 7.79% | 48.91% | 5.80% | 32.85% | 3.59% | 1.06%
Ohio | N/A | 49.89% | 12.61% | 36.11% | 0.96% | 0.43%
Wisconsin | 0.90% | 42.90% | 6.27% | 43.74% | 5.78% | 0.40%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

## State debt[edit]

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Indiana had a state debt of over $46 billion. Its state debt per capita was $7,094. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounts to $16,178 per capita in the nation.[38]

Total 2012 state debt

State  | Total state debt  | State debt per capita  | Per capita debt ranking
Indiana | $46,377,635,000 | $7,094 | 48
Illinois | $321,354,115,000 | $24,959 | 5
Michigan | $142,668,026,000 | $14,435 | 25
Ohio | $321,340,764,000 | $27,836 | 4
Wisconsin | $45,026,643,000 | $7,863 | 47
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

### Public pensions[edit]

See also: Indiana public pensions and Indiana public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Indiana's state-administered pension plans decreased from 68.7 percent to 58.4 percent. The state paid 88 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $15.4 billion. This amounted to $2,415 in unfunded liabilities per capita.[13][39]

### Credit ratings[edit]

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[15][40]

The table below lists the Standard and Poor's credit ratings for Indiana and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[41]

State credit ratings, 2004 to 2014

State  | 2014  | 2013  | 2012  | 2011  | 2010  | 2009  | 2008  | 2007  | 2006  | 2005  | 2004
Indiana | AAA | AAA | AAA | AAA | AAA | AAA | AAA | AA+ | AA+ | AA | AA
Illinois | A- | A- | A | A+ | A+ | A+ | AA | AA | AA | AA | AA
Michigan | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA | AA | AA+
Ohio | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+
Wisconsin | AA | AA | AA | AA | AA | AA | AA | AA- | AA- | AA- | AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

## Federal aid to the state budget[edit]

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[6]

The table below notes what share of Indiana's general revenues came from the federal government in 2012. That year, Indiana received approximately $10.4 billion in federal aid, 32 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[6]

Federal aid to state budgets, 2012

State  | Total federal aid ($ in thousands)  | Federal aid as a % of general revenue  | Ranking
Indiana | $10,441,125 | 32.32% | 29
Illinois | $15,646,844 | 25.66% | 43
Michigan | $17,849,942 | 33.76% | 24
Ohio | $20,687,909 | 34.88% | 17
Wisconsin | $8,855,079 | 28.19% | 38
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

### Stimulus[edit]

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Indiana received $4.1 billion in federal stimulus funding between February 2009 and June 2013.[42]

## Budget process[edit]

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[25]

1. In early Summer of the year preceding the beginning of the new biennium, budget instructions are sent to state agencies.
2. By September 1, agencies submit their budget requests to the governor.
3. Hearings are held with the public from November to April.
4. The governor submits his or her budget to the state legislature in January.
5. The legislature typically adopts a budget in April, effective for the fiscal biennium beginning in July. A simple majority is required to pass a budget.

There are no constitutional or statutory provisions mandating that the governor submit or sign a balanced budget. Budget deficits may be carried over to the next biennium.[25]

Indiana is one of six states in which the governor cannot exercise line item veto authority.[25][43]

### Agencies, offices, and committees[edit]

There are three major standing committees in the Indiana State Legislature that deal with budget and finance matters: the House Ways and Means Committee, the Senate Appropriations Committee and the Senate Tax and Fiscal Policy Committee.[44]

Fiscal duties in Indiana are split between the Indiana Office of Management and Budget (OMB), the state auditor and the state treasurer.[45][46]

The Indiana State Auditor is the chief financial officer of the state and is responsible for the following:[47]

* accounting for all of the state's funds
* overseeing and disbursing county, city, town, and school tax distributions
* paying the state's bills
* paying the state's employees
* administrating Indiana’s Deferred Compensation Plan

## Studies and reports[edit]

### U.S. PIRG "Following the Money" report[edit]

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending.[48] According to the report, Indiana received a grade of A- and a numerical score of 94, indicating that Indiana was leading in terms of transparency regarding state spending.[48]

# As published 2014[edit]

The information on this tab contains:

* Spending (fiscal year 2013)
* Spending by function (fiscal year 2012)
* Spending trends (fiscal years 2008 to 2012)
* Revenues (fiscal year 2013)
* Historical spending (fiscal years 2009 to 2012)
* Budget transparency

Between fiscal year 2009 and fiscal year 2013, Indiana's total expenditures increased by approximately $2.05 billion, from $25.719 billion in 2009 to $27.766 billion in 2013. This represented a 7.96 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[49][50]

## Spending[edit]

### Definitions[edit]

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[51]

* General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[51]
* Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[51]
* Federal funds: "Funds received directly from the federal government."[51]
* Bonds: "Expenditures from the sale of bonds, generally for capital projects."[51]

### 2013[edit]

Breakdown of expenditures in FY 2013
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[51] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[51]

State  | General fund  | Federal funds  | Other funds  | Bonds  | Total  | Per capita expenditures
Indiana | $14,189 | $10,357 | $3,220 | $0 | $27,766 | $4,225.60
Illinois | $29,260 | $15,407 | $19,825 | $1,955 | $66,447 | $5,158.07
Michigan | $9,164 | $19,295 | $20,107 | $182 | $48,748 | $4,926.22
Ohio | $31,514 | $12,630 | $12,950 | $1,174 | $58,268 | $5,035.78
Wisconsin | $14,042 | $10,815 | $17,912 | $0 | $42,769 | $7,447.53
Per-capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[52]
Source: National Association of State Budget Officers

## Spending by function[edit]

### 2012[edit]

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in Indiana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)[51]

State  | Elementary and secondary ed.  | Higher ed.  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
Indiana | 32.9% | 6.5% | 1.5% | 27.3% | 2.9% | 9.3% | 19.7%
Illinois | 15.8% | 5.5% | 0.1% | 19.7% | 2.2% | 8.5% | 48.1%
Michigan | 27.2% | 4.1% | 0.9% | 26.1% | 4.7% | 6.9% | 30.2%
Ohio | 20.6% | 4.2% | 1.5% | 24.4% | 3.1% | 5.1% | 41.2%
Wisconsin | 16.7% | 14.1% | 0.4% | 16.5% | 2.9% | 6.9% | 42.5%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[51]

## Spending trends[edit]

Between 2008 and 2012, state expenditures for elementary and second education rose by over nine percentage points, or 40 percent, as a share of the budget. Likewise, Medicaid spending rose by more than five percentage points, or 25.8 percent, as a share of the budget. Meanwhile, higher education expenditures fell by 1.4 percentage points, or 17.7 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012.[51][8][9][36][37] Fiscal year 2012 data is included in the table below. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)

Year  | Elementary and secondary ed.  | Higher ed.  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
2012 | 32.9% | 6.5% | 1.5% | 27.3% | 2.9% | 9.3% | 19.7%
2011 | 32.2% | 7.1% | 1.4% | 25.0% | 2.9% | 10.9% | 20.4%
2010 | 32.4% | 7.1% | 1.4% | 23.1% | 2.9% | 10.6% | 22.4%
2009 | 28.1% | 7.3% | 1.3% | 21.8% | 2.9% | 9.2% | 29.4%
2008 | 23.5% | 7.9% | 1.4% | 21.7% | 3.0% | 10.3% | 32.2%
Change in % | 9.4% | -1.4% | 0.1% | 5.6% | -0.1% | -1%  | -12.5%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[51]

## Revenues[edit]

### 2013 revenues[edit]

Breakdown of general fund revenue sources in FY 2013
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[51] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[51]

State  | Sales tax  | Personal income tax  | Corporate income tax  | Gaming tax  | Other taxes and fees  | Total  | Per capita revenue
Indiana | $6,796 | $4,978 | $968 | $555 | $1,165 | $14,462 | $2,200.92
Illinois | $7,335 | $16,630 | $3,086 | $340 | $8,899 | $36,290 | $2,817.08
Michigan | $1,832 | $5,844 | $438 | $0 | $1,075 | $9,189 | $928.59
Ohio | $8,445 | $9,508 | $262 | $0 | $11,344 | $29,559 | $2,554.62
Wisconsin | $4,410 | $7,497 | $925 | $0 | $1,254 | $14,086 | $2,554.62
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[52]
Source: National Association of State Budget Officers

### Revenue trends[edit]

The table below details the change in revenue sources in the general fund from 2009 to 2013.[51][8] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Indiana ($ in millions)[51][8]

Year  | Sales tax  | Personal income tax  | Corporate income tax  | Gaming tax  | Other taxes and fees  | Total  | Per capita revenue
2013 | $6,796 | $4,978 | $968 | $555 | $1,165 | $14,462 | $2,200.92
2012 | $6,622 | $4,766 | $959 | $614 | $1,164 | $14,125 | $2,160.52
2011 | $6,218 | $4,586 | $705 | $660 | $1,106 | $13,275 | $2,037.19
2010 | $5,915 | $3,876 | $592 | $659 | $1,145 | $12,187 | $1,877.82
2009 | $6,153 | $4,314 | $839 | $608 | $1,021 | $12,935 | $2,013.82
Change in % | 10.45% | 15.39% | 15.38% | -8.72% | 14.10% | 11.81% | 9.29%
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[52][53]
Source: National Association of State Budget Officers

## Historical spending[edit]

The information on state budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[51][9]

Historical state spending in Indiana ($ in millions)

Fiscal year | General Fund | Other funds | Federal funds | Bonds | Budget totals
Total | % of Budget | Total | % of Budget | Total | % of Budget | Total | % of Budget
2011-2012 | $13,579 | 52% | $3,454 | 13% | $9,272 | 35% | $0 | 0% | $26,305
2010-2011 | $13,037 | 49% | $3,348 | 13% | $9,952 | 38% | $100 | 0% | $26,437
2009-2010 | $12,915 | 48% | $3,239 | 12% | $10,333 | 39% | $169 | 1% | $26,656
Averages: |  $13,177 | 50% |  $3,347 | 13% | $9,852 | 37% | $90 | 0% | $26,466

## Budget transparency[edit]

Transparency evaluation

| Contracts database  | ITP
Searchability | Y

| Y

Grants | N

| N

Contracts | Y

| Y

Line item expenditures | N

| Y

Dept./agency budgets | N

| Y

Public employee salaries | N

| Y

Last evaluated in 2011.

See also: Evaluation of Indiana state website and Constitutional provisions regarding reading of bills

Article 4, Section 18 of the Indiana Constitution requires that the “title” of a bill be read on three days in each legislative chamber prior to a final vote on the bill.

Indiana operates a financial transparency website, the Indiana Transparency Portal (ITP).[54] The website is intended to compile Indiana budget data, spending reports and other financial information that previously had been spread across multiple sites.[55] As of August 2010, however, the website did not include updated numbers on exactly what cuts had been made since Republican Governor Mitch Daniels ordered millions of dollars in reductions after the budget was approved by lawmakers. The site was further criticized for not showing where taxpayer money went under job incentives through the Indiana Economic Development Corporation.[55]

In March 2011, the state added agency performance reviews to the ITP and more reports on local government spending.[56][57]

### Government tools[edit]

Indiana publishes a database of contracts, available from the Indiana Department of Administration. The state's active contract listing provides an up-to-date list of all professional services contracts in which the state is currently a participant.

The table to the right is helpful in evaluating the level of transparency provided by this database and ITP.

### Support for creation of the database[edit]

Governor Mitch Daniels created the contracts website via executive order in 2005.

### Multi-measure budget transparency profile[edit]

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Indiana, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[58][59]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Indiana tied for 33rd in the nation with 12 other states, earning four out of eight possible points.[60]

Indiana - IGPA score for budget process, contents and disclosure

Budget transparency indicator  | Yes or no?
Performance measures |

"Generally Accepted Accounting Principles" budget | N

Multi-year forecasting |

Annual cycle | N

Binding revenue forecast |

Legislative revenue forecast |

Nonpartisan staff | N

Constitution or statutory tax/spend limitations | N

TOTAL | 4

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[60]

# Prior fiscal year budgets[edit]

### Fiscal years 2016 and 2017[edit]

See budget bill: HEA 1001

On January 8, 2015, Governor Mike Pence proposed his biennial budget for fiscal years 2016 and 2017. This budget called for general fund spending to equal about $15.14 billion in 2016 and $15.31 billion in 2017, which is a two-year average increase of 1.34 percent. The governor has insisted that some of the state's funding priorities should include education, citizens in need, economic development and job creation and preparations to commemorate the state's bicentennial anniversary.[10]

Governor Pence signed the state's official budget on May 7, 2015. General fund appropriations totaled about $15.4 billion in fiscal year 2016 and $15.8 billion in fiscal year 2017, which was higher than the governor's proposed budget. The budget appropriated spending increases in education and pensions, but most other executive branch agencies received spending reductions of about 3 percent.[10]

### Fiscal years 2014 and 2015[edit]

See budget bill: HEA 1001

Indiana state budget -- 2014 and 2015

Indiana State Legislature
Text:| HEA 1001
Legislative history
Introduced:| January 15, 2013
House:| February 25, 2013
Vote (lower house):| 68-28
Senate:| April 9, 2013
Vote (upper house):| 38-12
Conference:| April 27, 2013
Conference vote (upper house):| 70-30
Conference vote (lower house):| 39-11
Governor:| Mike Pence
Signed:| May 8, 2013

On January 15, 2013, Governor Mike Pence introduced his proposed $29 billion biennial general fund appropriations budget.[61] The proposal included $14.4 billion in spending in fiscal year 2014 and $14.6 billion in spending in fiscal year 2015.[62] It increased state funding by about $200 million in each year of the biennium, or roughly 1.4 percent per year.[61]

On May 8, 2013, Pence signed a $30 billion general fund appropriations budget into law. Passed by the Republican-controlled state legislature, the budget increased elementary and secondary education funding by 2 percent in 2014 and 1 percent more in 2015. The enacted budget also included a personal income tax cut (from 3.4 percent to 3.3 percent), a corporate income tax cut, and eliminated the inheritance tax.[63]

### Fiscal year 2013[edit]

The fiscal year 2012 and 2013 state budget as enacted can be accessed here.

### Fiscal year 2012[edit]

See also: Indiana state budget (2011-2012)

### Fiscal year 2011[edit]

See also: Indiana state budget (2010-2011)

### Fiscal year 2010[edit]

See also: Indiana state budget (2009-2010)

## See also[edit]

* Indiana state budget and finances

## Footnotes[edit]

1. ↑ Bureau of Labor Statistics, "CPI Detailed Report Data for February 2015," accessed April 4, 2016
2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016 Cite error: Invalid `<ref>` tag; name "nasbo2015" defined multiple times with different content
3. ↑ InflationData.com, "Cumulative Inflation Calculator," accessed April 4, 2016. The cumulative rate of inflation during the same period declined -0.1 percent, calculated using the Consumer Price Indices for January 2014 and January 2015.
4. ↑ 4.0 4.1 4.2 4.3 National Association of State Budget Officers, "State Expenditure Report: 2013-2015," accessed April 7, 2016
5. ↑ 5.0 5.1 5.2 5.3 U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016 Cite error: Invalid `<ref>` tag; name "taxcollections" defined multiple times with different content Cite error: Invalid `<ref>` tag; name "taxcollections" defined multiple times with different content
6. ↑ 6.0 6.1 6.2 6.3 United States Census Bureau, "State Government Finances: 2013," accessed March 21, 2016 Cite error: Invalid `<ref>` tag; name "federalaid" defined multiple times with different content
7. ↑ United States Census Bureau, "State and County QuickFacts," accessed April 4, 2016
8. ↑ 8.0 8.1 8.2 8.3 8.4 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
9. ↑ 9.0 9.1 9.2 9.3 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
10. ↑ 10.0 10.1 10.2 10.3 National Association of State Budget Officers, "Summaries of Fiscal Year 2016 Proposed and Enacted Budgets," accessed September 22, 2015
11. ↑ State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
12. ↑ Truth in Accounting, "Financial State of the States," September 2015
13. ↑ 13.0 13.1 Morningstar, "The State of State Pension Plans 2013: A Deep Dive Into Shortfalls and Surpluses," accessed September 16, 2013
14. ↑ The Pew Charitable Trusts, “The Fiscal Health of State Pension Plans: Funding Gap Continues to Grow,” accessed April 16, 2015
15. ↑ 15.0 15.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
16. ↑ Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
17. ↑ Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
18. ↑ Academy Health, "Impact of the Economy on Health Care," August 2009
19. ↑ The Conversation, "Budget explainer: What do key economic indicators tell us about the state of the economy?" May 6, 2015
20. ↑ Health Affairs, "Socioeconomic Disparities In Health: Pathways And Policies," accessed July 13, 2015
21. ↑ The Henry J. Kaiser Family Foundation, "Distribution of Total Population by Federal Poverty Level," accessed July 17, 2015
22. ↑ The Henry J. Kaiser Family Foundation, "Median Annual Household Income," accessed July 17, 2015
23. ↑ The Henry J. Kaiser Family Foundation, "Unemployment Rate (Seasonally Adjusted)," accessed July 17, 2015
24. ↑ The Henry J. Kaiser Family Foundation, "Total Gross State Product (GSP) (millions of current dollars)," accessed July 17, 2015
25. ↑ 25.0 25.1 25.2 25.3 25.4 25.5 National Association of State Budget Officers, "Budget Processes in the States, Spring 2021," accessed January 24, 2023
26. ↑ National Conference of State Legislatures, "Separation of Powers: Executive Veto Powers," accessed January 26, 2024
27. ↑ Indiana General Assembly, "Standing Committees," accessed February 25, 2015
28. ↑ IN.gov, "Office of Management and Budget," accessed March 14, 2014
29. ↑ IN.gov, "State Auditor," accessed March 14, 2014
30. ↑ IN.gov, "Indiana Auditor Suzanne Crouch - Auditor's Info," accessed March 14, 2014
31. ↑ 31.0 31.1 U.S. Public Interest Research Group, "Following the Money 2015 Report," accessed April 4, 2016
32. ↑ Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
33. ↑ InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
34. ↑ 34.0 34.1 34.2 34.3 34.4 34.5 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
35. ↑ United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
36. ↑ 36.0 36.1 National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
37. ↑ 37.0 37.1 National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
38. ↑ State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
39. ↑ The Pew Charitable Trusts, “The Fiscal Health of State Pension Plans: Funding Gap Continues to Grow,” accessed April 16, 2015
40. ↑ Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
41. ↑ Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
42. ↑ Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
43. ↑ National Conference of State Legislatures, "Separation of Powers: Executive Veto Powers," accessed January 26, 2024
44. ↑ Indiana General Assembly, "Standing Committees," accessed February 25, 2015
45. ↑ IN.gov, "Office of Management and Budget," accessed March 14, 2014
46. ↑ IN.gov, "State Auditor," accessed March 14, 2014
47. ↑ IN.gov, "Indiana Auditor Suzanne Crouch - Auditor's Info," accessed March 14, 2014
48. ↑ 48.0 48.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
49. ↑ Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
50. ↑ InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
51. ↑ 51.00 51.01 51.02 51.03 51.04 51.05 51.06 51.07 51.08 51.09 51.10 51.11 51.12 51.13 51.14 51.15 National Association of State Budget Officers, "State Expenditure Report, 2011-2013," accessed February 21, 2014
52. ↑ 52.0 52.1 52.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
53. ↑ United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
54. ↑ IN.gov, "Indiana Transparency Portal," accessed March 14, 2014
55. ↑ 55.0 55.1 Fox41.com, "New Ind. website pulls together state budget data," August 31, 2010
56. ↑ Indianapolis Business Journal, "Indiana state budget website gets new features," March 14, 2011
57. ↑ IN.gov, "Indiana Transparency Portal - Performance and Accountability," accessed March 14, 2014
58. ↑ Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
59. ↑ Institute of Government and Public Affairs at University of Illinois, "Indiana: Budget Transparency Profile," September 2011
60. ↑ 60.0 60.1 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
61. ↑ 61.0 61.1 The South Bend Tribune, "Pence submits lean state budget with new tax cut," accessed January 16, 2013
62. ↑ The Indianapolis Star, "Indiana Gov. Mike Pence budget raises education, Medicaid, transportation spending," January 15, 2013
63. ↑ The Times of Northwest Indiana, "Pence signs two-year Indiana budget," May 8, 2014

v • e

Budget policy

Budget background|

Government budgets • Cost of state transparency websites • State budget issues • Public employee salaries • Public pensions • States with spending online • Glossary of state budget terms • Total state expenditures • State spending by function as a percent of total expenditures

* * *

State budget and finance pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Tax policy background|

Personal income tax • Sales tax • Corporate income tax • Property tax • Excise taxes • Estate and inheritance taxes • Capital gains tax

* * *

State tax policy pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Comparative analysis of state debt|

Federal outlays to state government (2014-2017) • State tax revenue projections and shortfalls (2020-2021) • Proportion of state government general revenues from the federal government (2014-2018) • State debt per capita (2014-2018) • State unfunded public pension liabilities, 2003-2018

v • e

State of Indiana
Indianapolis (capital)

|

Elections |

What's on my ballot? | Elections in 2024 | How to vote | How to run for office | Ballot measures

Government |

Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy