2019 2019-21 B 21 Biennial al Budget Governors Proposed Budget - - PowerPoint PPT Presentation

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2019 2019 21 b 21 biennial al budget
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2019 2019-21 B 21 Biennial al Budget Governors Proposed Budget - - PowerPoint PPT Presentation

Apr 07, 2024 252 likes •441 views

2019 2019-21 B 21 Biennial al Budget Governors Proposed Budget Fiscal Year 2020 and 2021 January 10, 2019 State Budget Committee Governor Eric J. Holcomb Strong Fiscal Discipline and Balanced Budget Honestly balanced budget

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2019 2019-21 B 21 Biennial al Budget

Governor’s Proposed Budget Fiscal Year 2020 and 2021 January 10, 2019 State Budget Committee Governor Eric J. Holcomb

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Strong Fiscal Discipline and Balanced Budget

  • Honestly balanced budget
  • On-going annual revenues meet or exceed on-going annual operating

expenses

  • Maintain AAA credit rating from the big three rating agencies
  • Maintain at least 11 percent in reserves
  • End the 2019-21 biennium with approximately $1.8 billion in reserves

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Historic and Projected General Fund Forecasted Revenue

$13,274.2 $14,125.1 $14,462.1 $14,402.2 $14,898.4 $14,819.9 $15,274.1 $15,571.3 $16,140.4 $16,583.2 $16,969.2 $4,000.0 $6,000.0 $8,000.0 $10,000.0 $12,000.0 $14,000.0 $16,000.0 $18,000.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Est) 2020 (Proj) 2021 (Proj) 3 Source: Indiana State Budget Agency Revenue Reports

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General Fund Revenue Forecast 2019 - 2021

$7,662.6 $7,921.8 $8,115.7 $8,252.7 $5,816.1 $6,037.0 $6,249.0 $6,468.1 $660.4 $773.4 $790.4 $792.7 $1,432.2 $1,408.2 $1,428.1 $1,455.7 $4,000.0 $6,000.0 $8,000.0 $10,000.0 $12,000.0 $14,000.0 $16,000.0 $18,000.0 2018 (Act) 2019 (Est) 2020 (Proj) 2021 (Proj) Sales and Use Individual Corporate Other 4 Source: Indiana State Budget Agency Dec. 2018 Revenue Forecast

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2019-21 General Fund Revenue Summary

Percentage of General Fund Biennial Budget

48.6% 38.1% 4.7%

Sales and Use Individual Income Corporate Riverboat Wagering (1.8%) Insurance (1.5%) Cigarette (1.3%) Motor & Comm. Vehicle Excise (1.7%) Other (2.3%)

5 Source: Indiana State Budget Agency Dec. 2018 Revenue Forecast

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2019-21 General Fund Expenditure Summary

Percentage of General Fund Biennial Budget

15.2% 11.8% 50.1% 9.3%

Medicaid Higher Education Operating K-12 Education/Teacher Retirement/Other Education Other Health & Human Services Public Safety (6.2%) General Government (3.6%) Construction (2.0%) Economic Development (0.8%) Conservation and Environment (0.5%) Transportation (0.3%) Distributions (0.4%)

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INPRS Historical &Proposed Appropriations

$’s in millions

$835.7 $870.1 $963.1 $948.9 $1,003.2 $1,032.6 $1,012.3 $1,057.1 $1,071.3 $1,079.5 $1,107.7 $0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Est) 2020 (Proj) 2021 (Proj) 7

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State of Indiana - Debt Outstanding

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Since June of 2005, Indiana has reduced its state debt by 69% through June of 2019

Source: Indiana Finance Authority

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AAA Credit Rating – Strong Position

  • Indiana continues to have strong standing in the rating agency

community

  • AAA credit rating from all three major rating agencies
  • Fitch Ratings
  • Moody’s
  • Standard and Poor’s
  • One of 13 states with all three at AAA rating status
  • High ratings saves the state and school corporations money, serves as

a recruitment tool to business and talent that know our financial future is secure

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10 Source: Indiana Finance Authority and Citi Group Global Markets

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Surplus and Reserve Balances General Fund

Governor’s Proposed 2019-21 Budget ($’s in millions)

  • Annual Operating Surplus
  • Annual Reserve Balance

11 $45.6 $95.8 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 2020 2021 $2,111.3 $2,188.7 $2,060.0 $2,080.0 $2,100.0 $2,120.0 $2,140.0 $2,160.0 $2,180.0 $2,200.0 2020 2021

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Investing in Indiana’s Economy

  • Update the Industrial Recovery Tax Credit (DINO), limit to $5M in state

funds and create a loan program for support above $5M

  • Move Indiana to a Market-based sourcing state
  • Make the Venture Capital Investment Tax Credit transferable
  • Update the Hoosier Business Investment Tax Credit by changing “qualified

investments” and to address more modern purchases

  • $1.5M per year for innovation grants to small business to purchase

research expertise at Indiana’s public higher education research institutions

  • Update the Headquarter Relocation Tax Credit for smaller businesses with

high growth potential

  • Exempt military retirement and pension income from Indiana individual

income tax, phase in over four years

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Capital Improvements

  • Continue to support the West Lake Corridor and South Shore Double

Track projects, $12M per year in state funding

  • $150M of one-time funding from the general fund for major repair

and renovation work on state-owned facilities to get ahead of the curve on building condition

  • $12M for a third State Police lab/post
  • $3.5M in FY21 for state support debt financing of a new Swine Barn at

the State Fairgrounds

  • $2.5M in FY20 for design and engineering support for new barn
  • $16.7M for updated and new fish hatchery facilities operated by DNR

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Workforce, Education and Career Training

  • Increase K-12 Tuition Support by 2% each year
  • $143M in FY20 and $146M in FY21, total $432M over biennium
  • Shift $20M per year to Tuition Support from Teacher Appreciation Grants
  • Increase the number of children served by On My Way Pre-K by 500

children

  • Increase the state school supplies tax credit from $100 to $500
  • Directly impacts teachers and funded through shifting current resources
  • $3M per year for Next Level Computer Science training
  • Increased funding for Workforce Ready Grants, $2M per year
  • $2M each year for High School Career Counseling, supporting by the IN

Workforce Cabinet

  • $1.8M over the biennium for the Office of Work-based Learning and

Apprenticeship

  • Move HIRE program from DWD to DoC

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Historical Funding of K-12 Tuition Support

$’s in millions

$6,262.8 $6,308.7 $6,622.8 $6,691.6 $6,820.3 $6,980.5 $7,059.3 $7,160.0 $7,323.2 $7,469.3 $4,000.0 $4,500.0 $5,000.0 $5,500.0 $6,000.0 $6,500.0 $7,000.0 $7,500.0 $8,000.0 2012 2013 2014 2015 2016 2017 2018 2019 Est 2020 Proj 2021 Proj 15

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Public Health & Attacking the Drug Epidemic

  • Continue to fund Secured School Safety Grants at $14M per year and

implement the August 2018 School Safety Report

  • Support DCS by budgeted at FY18 spending levels, $286M more to DCS

versus FY19 appropriation.

  • $3.3M per year for OB Navigator Program to address infant mortality
  • $1.1M per year for Youth Based Risk Behavior studies across all Indiana

schools

  • Continued support or Safety PIN and Nurse Family Partnership
  • Medicaid forecast fully funded with new funding:
  • $84M increase in FY20 and an additional $123.1M in FY21
  • Funds the CHIP plan based on new state matching rates set by the federal

government

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Good Government

  • 3.3% adjustment to base budgets to account for pay for performance and

health insurance change in personnel costs

  • $3.25M for DLGF to modernize technology to provide more efficient

services, accurate report and online personal property tax system

  • $41.7M for DOR to continue to implement the new Integrated Tax System
  • Fully funds county felon costs at the county level for Level 6 offenders,

$6.1M more per year

  • $10M of capital funding to support voter system upgrades by the Secretary
  • f State
  • $1M per year for Lt. Governor’s Next Level Veterans initiative
  • Funds required state contributions to pension and OPEB plans
  • Eliminates the Build Indiana Fund program and adjusts revenues and

appropriations to flow through the General Fund

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