INDIANAPOLIS – Indiana’s economic outlook was revised slightly downward on Thursday as members of the State Budget Committee publicly reviewed the most recent state revenue forecast. State Senator Karen Tallian, the top Senate Democrat on the influential panel, was troubled by the updated forecast, especially by indicators suggesting anemic progress in wage growth.
“There is no way around it, Indiana’s economy is flat-lining,” said Tallian. “Forecasters are predicting what Hoosier households already know: incomes are stuck in a decade-long holding pattern. The numbers don’t lie. The Pence economic agenda has been very good for big corporations, banks and the wealthy while leaving working Hoosiers behind.”
The Revenue Forecast Technical Committee revised their estimate of Indiana’s revenue forecast, now projecting revenue generated from income tax collection in 2016 to grow just 0.3 percent from 2015. The updated forecast also shows revenue generated from corporate tax collections declining by 10.5 percent from 2015. Republican leaders sold controversial tax cuts for high earners, big banks, and corporations in 2011, 2013, and 2014 by promising that more economic activity would replace revenue lost by tax cuts. Recent analysis from the non-partisan Legislative Services Agency estimates the total loss in revenue due to tax cuts will reach more than $6 billion by 2023.*
“The promise has failed. The economic boom and revenue has not come pouring in,” said Tallian. “We will have shelled out billions in tax cuts and have nothing to show for it beyond a superficial magazine ranking.”
Tallian has been highly critical of the administration’s insistence on corporate tax relief when Indiana household incomes continue to sag. According to figures from the Bureau of Labor Statistics, only five states had slower personal income growth than Indiana between 2013 and 2014. Tallian also noted an alarming trend in the number of Hoosiers eligible for Medicaid.
“By 2017, it’s estimated that 1.5 million Hoosiers will be on Medicaid. This represents almost a quarter of our state population, despite an unemployment rate of 4.2 percent,” said Tallian. “This is a strong argument for increasing minimum wage. It is unacceptable that we have so many working Hoosiers whose incomes are low enough to qualify for Medicaid.”
Tallian intends to offer legislation in 2016 to raise Indiana’s minimum wage.
Sen. Tallian represents Senate District 4 which encompasses portions of northern Porter County and Michigan, Coolspring and New Durham townships in LaPorte County. For more information on Sen. Tallian, her legislative agenda or other State Senate business call 1-800-382-9467 or visit http://www.IN.gov/s4.
###
A photo of Sen. Karen Tallian can be downloaded at: http://indianasenatedemocrats.org/wp-content/uploads/2014/11/Tallian.jpg
*Note: An updated copy of the Legislative Services Agency’s analysis of recent tax cuts is available here: http://indianasenatedemocrats.org/wp-content/uploads/2015/12/Revenue-Loss-UPDATE-APRIL-2015.pdf
The original analysis, prepared for the Senate Democratic Caucus by LSA in 2014, is available here: http://indianasenatedemocrats.org/wp-content/uploads/2015/12/SenateDemocratTaxCutAnalysis.pdf
Indiana Senate Democrats: The Briefing Room 
