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

General Fund Revenue Forecast 2017-2019 $’s in millions $16,000.0 $1,322.5 $1,339.8 $1,331.8 $932.8 $1,394.7 $14,000.0 $926.7 $911.7 $984.0 $12,000.0 $5,942.0 $5,596.3 $5,399.8 $10,000.0 $5,218.2 $8,000.0 $6,000.0 $4,000.0 $7,889.7 $7,618.0 $7,400.2 $7,222.6 $2,000.0 $0.0 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 Sales and Use 5.9% Individual Income Corporate Riverboat Wagering (1.9%) Insurance (1.6%) 49.0% Cigarette (1.5%) 36.5% Motor & Commercial Vehicle Excise Other (1.4%) Racino Wagering (0.7%)

2017-19 General Fund Expenditure Summary Percentage of General Fund Biennial Budget Medicaid 1.7% 3.9% Higher Education 6.3% 13.8% K-12 Education/Teacher Retirement/Other Education Other Healh & Human Svcs 8.3% 12.0% Public Safety General Government 51.9% Construction Economic Development (0.8%) Conservation and Environment (0.5%)

INPRS Historical and Proposed Appropriations $’s in millions $1,200.0 $1,049.3 $1,003.2 $1,032.6 $1,012.3 $1,027.1 $948.9 $963.1 $1,000.0 $870.1 $842.1 $835.7 $800.0 $683.8 $600.0 $400.0 $200.0 $0.0 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 $4,000 $3,500 68% Decline $3,000 $ in Millions $2,500 $2,000 $1,500 $1,000 $500 $- 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

AAA Bond Rating – Best in History Washington AA+/Aa1/AA+ Montana AA/Aa1/AA+ Oregon AA+/Aa1/AA+ Idaho + AA+/Aa1/AA+ Wyoming AAA/NR/NR Nevada Ohio AA/Aa2/AA+ AA+/Aa1/ A AA+ Colorado (AA/Aa1/NR) AA-/ Arizona AA/Aa2/NR New Mexico AA Indiana is one of 12 States with top bond rating from all three major credit rating agencies

Surpluses in Introduced Budget $250 $197.5 $200 $150 $100 $84.6 $50 $0 FY 2018 FY 2019

FY 2018/2019 Reserve Balances $2,050 $2,000.5 $2,000 $1,950 $1,900 $1,850 $1,834.1 $1,800 $1,750 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 21 st 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 $7,400.0 $7,190.5 $7,200.0 $7,050.3 $6,980.5 $7,000.0 $6,820.3 $6,800.0 $6,691.6 $6,622.8 $6,558.7 $6,600.0 $6,420.8 $6,400.0 $6,262.8 $6,308.7 $6,200.0 $6,000.0 $5,800.0 $5,600.0 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 21 st 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 Save Hoosier lives by addressing Indiana’s drug crisis with accountability & action  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

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