The Indiana Auditor of the State’s office released fiscal information today detailing the economic standing of the state. Indiana annually compiles numbers at the end of each fiscal year listing the amount of revenue the state collected, expenditures made and status of the state’s reserves. State Senator John Broden responded to news of the surplus, claiming that it does not come without a cost.
As expected, the state’s surplus rose to over $2 billion, however the amount was largely the result of cuts in services made to vital programs. In all, more than $428 million in General Fund reversions went toward the cash reserves in fiscal year 2012.
More than $2 million in cuts were made to a popular initiative to keep elderly Hoosiers in their homes, over $4 million were made to residential services for Hoosiers with developmental disabilities and another $4 million was slashed from the funds the state appropriates to the those with serious mental health issues.
Summary of FY2012 Reversions from the General Fund (PDF)>>
Detailed Listing FY2012 Reversions Statement (PDF)>>
Sen. Broden released the following statement in response to State Auditor Tim Berry’s announcement today of a record $2.1 billion state surplus at the close of the state’s Fiscal Year 2012.
“While the governor’s office is claiming political victory about another state surplus, we can’t ignore the fact that there are losers in the equation. The state should not have accumulated this much without restoring cuts that were initially masked as temporary measures to address state funding shortfalls. These accumulated savings have come at a cost to Hoosiers, from cuts to K-12 schools and higher ed funding to services for vulnerable populations.
“Last year was a time of hardship for many families in our state. Instead of stepping up assistance to fill in those gaps, the state has pulled back services, leaving many Hoosiers to struggle to the detriment of their health and livelihood.
“The past several years have warranted budget reductions and tight management, and we have accomplished that through the state budget approved by the General Assembly. Continually, however, this administration has unilaterally overridden legislators’ decisions, based on public testimony and observance of local needs, and cut services to certain populations.
“These decisions were not made based on public budget hearings nor were they made by locally elected officials. They were made in offices in Indianapolis.
“When a political win comes with human costs, it certainly isn’t a victory we can all share.”
Sen. Broden is the Senate Democratic member on the State Budget Committee and the ranking Democrat on the Senate Appropriations Committee.