FY 2018 and FY 2019 Budget Governor Eric Holcomb Leading Indiana to - - PowerPoint PPT Presentation

FY 2018 and FY 2019 Budget

Governor Eric Holcomb

Leading Indiana to the Next Level

• Cultivate a strong and diverse economy by growing

Indiana as a magnet for jobs

• Create a 20-year plan to fund roads and bridges
• Develop a 21st century skilled and ready workforce
• Attack the drug epidemic
• Deliver great government service

Cultivate a Strong and Diverse Economy

Growing Indiana as a Magnet for Jobs starts with Fiscal Discipline

• Honestly Balanced Budget
• Maintain Prudent Reserve Levels
• Keep AAA Credit Rating

Historical and Estimated General Fund Revenue

$’s in millions

$12,987.8 $12,236.3 $13,313.9 $14,126.1 $14,460.0 $14,483.1 $14,982.2 $14,819.5 $15,043.5 $15,480.8 $16,087.0 $0.0 $2,000.0 $4,000.0 $6,000.0 $8,000.0 $10,000.0 $12,000.0 $14,000.0 $16,000.0 $18,000.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Proj. 2018 Est. 2019 Est.

General Fund Revenue Forecast 2017-2019

$’s in millions

$7,222.6 $7,400.2 $7,618.0 $7,889.7 $5,218.2 $5,399.8 $5,596.3 $5,942.0 $984.0 $911.7 $926.7 $932.8 $1,394.7 $1,331.8 $1,339.8 $1,322.5 $0.0 $2,000.0 $4,000.0 $6,000.0 $8,000.0 $10,000.0 $12,000.0 $14,000.0 $16,000.0 2016 Act. 2017 Proj. 2018 Est. 2019 Est.

Sales and Use Individual Corporate Other

2017-19 General Fund Revenue Summary

Percentage of General Fund Biennial Budget

49.0% 36.5% 5.9% Sales and Use Individual Income Corporate Riverboat Wagering (1.9%) Insurance (1.6%) Cigarette (1.5%) Motor & Commercial Vehicle Excise Other (1.4%) Racino Wagering (0.7%)

2017-19 General Fund Expenditure Summary

Percentage of General Fund Biennial Budget

13.8% 12.0% 51.9% 8.3% 6.3% 3.9% 1.7% Medicaid Higher Education K-12 Education/Teacher Retirement/Other Education Other Healh & Human Svcs Public Safety General Government Construction Economic Development (0.8%) Conservation and Environment (0.5%)

INPRS Historical and Proposed Appropriations

$’s in millions

$683.8 $842.1 $835.7 $870.1 $963.1 $948.9 $1,003.2 $1,032.6 $1,012.3 $1,027.1 $1,049.3

$0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 2009 2010 2011 2012 2013* 2014 2015 2016 2017 Proj. 2018 Est. 2019 Est.

* 2013 does not include $329M in Excess Reserves appropriated to INPRS in 2013

Indiana State Debt Outstanding

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 06/30/05 06/30/07 06/30/09 06/30/11 6/30/2013 6/30/2015 6/30/2017 State Tax Funded Gas Tax Funded Payment Delays Toll Funded BMVC Debt

$ in Millions

68% Decline

Washington AA+/Aa1/AA+ Oregon AA+/Aa1/AA+ Nevada AA/Aa2/AA+ A AA-/ Montana AA/Aa1/AA+ Arizona AA/Aa2/NR Colorado (AA/Aa1/NR) New Mexico AA Ohio AA+/Aa1/ AA+ Idaho AA+/Aa1/AA+ Wyoming AAA/NR/NR +

AAA Bond Rating – Best in History

Indiana is one of 12 States with top bond rating from all three major credit rating agencies

Surpluses in Introduced Budget

$84.6 $197.5 $0 $50 $100 $150 $200 $250 FY 2018 FY 2019

FY 2018/2019 Reserve Balances

$1,834.1 $2,000.5 $1,750 $1,800 $1,850 $1,900 $1,950 $2,000 $2,050 FY 2018 FY 2019

Invest $1 Billion to Innovation and Entrepreneurship over Ten Years

• Next Level Indiana Trust Fund - $500m over ten

years

• Venture Capital Investment Tax Credit

Transferability – estimated $6m annual fiscal impact

• Continue Appropriations to the 21Fund - $30m

annual

Invest $1 Billion to Innovation and Entrepreneurship over Ten Years

• Innovation and Entrepreneurship Grant Program for

Partnerships with Higher Education and Communities - $10m per year

• Fund additional Research Capabilities at the Indiana

Biosciences Research Institute - $20m one-time fiscal impact

• Regional Cities Planning Grants - $4m one-time

fiscal impact

Create a 20-Year Roads and Bridges Plan

• Maintain Our Existing Roads and

Bridges

• Finish the Projects We Have

Started

• Invest In New Projects That

Enhance Competitiveness

• Fund What We Need…

Responsibly!

Other Transportation & Infrastructure Priorities

• Add more Direct Flights from Indiana Airports - $5m

per year

• Double Track the South Shore Line to create greater

access to and from Chicago - $10m per year beginning in FY 2019

• Federal dollar swap for local projects
• Create a water infrastructure safety and reliability

data hub through the Management Performance Hub

Educate, Train, Retrain, & Recruit A 21st Century Workforce For Indiana

• Double investment in quality pre-k for Hoosier

children most in need from $10m per year to $20m per year

• Increase K-12 funding by $70m in FY 2018 and

$210m in FY 2019 (as compared to FY 2017)

• Increase higher education funding by $13m in FY

2018 and $39m in FY 2019

6

K-12 Tuition Support Historical and Proposed Appropriations $’s in millions

$6,420.8 $6,558.7 $6,262.8 $6,308.7 $6,622.8 $6,691.6 $6,820.3 $6,980.5 $7,050.3 $7,190.5

$5,600.0 $5,800.0 $6,000.0 $6,200.0 $6,400.0 $6,600.0 $6,800.0 $7,000.0 $7,200.0 $7,400.0 2010 2011 2012 2013 2014 2015 2016 2017 Proj. 2018 Prop. 2019 Prop.

* 2010 Indiana took over local taxation of K-12 support

Educate, Train, Retrain, & Recruit A 21st Century Workforce For Indiana

• Grant program to help adults earn credentials,

certificates and degrees in high demand, high- wage fields - $2m per year

• Lead a statewide effort to align STEM efforts

throughout K-12 education - $1m per year

• E-Rate funding for school corporations to match

federal programs for connectivity - $1m per year

6

Attack the Drug Epidemic

• Create the role of Executive Director of Drug

Treatment, Prevention & Enforcement to

direct all efforts across state government and address this epidemic in a targeted and comprehensive manner

• $5m per year

Save Hoosier lives by addressing Indiana’s drug crisis with accountability & action

Deliver Great State Government Services

• Modernize revenue system - $33m in this biennium
• Increase police pay and fund police pensions - $34m

appropriation increase in this biennium

• Exempt military pensions from Income Tax - $15m

impact in this biennium

• Increase funding for Nurse-Family Partnership

Program - $5m per year