Indiana budget outlook shows bigger tax revenue jump

<p>INDIANAPOLIS &mdash; Indiana’s state tax collections are expected to bounce back even stronger than expected from the pandemic recession.</p>
<p>A new state <a href="https://www.in.gov/sba/files/Presentation%20to%20the%20State%20Budget%20Committee%20-%20April%2015,%202021.pdf">tax revenue forecast</a> given Thursday to state legislators projects those collections going up by more than 4% in each of the next two years. That could mean about $2 billion more available for the new two-year state budget being completed by legislative negotiators after the last forecast in December projected growth between 2% and 3%.</p>
<p>Republican budget writers will likely face pressure to further increase school funding and the amount of money going to other state programs.</p>
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<a href="https://apnews.com/article/indiana-state-budgets-school-vouchers-f9f8895ac57342a7178f78c6a45e4b7b">The latest budget proposal</a> endorsed by the Senate this week would increase overall school funding by 1.2% the first year and about 3% the second year, slightly more than a plan that the Republican-dominated House endorsed in February.</p>
<p>Those plans include a contentious expansion of the state’s private school voucher program. Democrats have criticized the budget plans for doing little to directly boost the state’s lagging teacher pay or take up <a href="https://apnews.com/article/business-indiana-teacher-pay-6e6f4a3c8bde442a90c792e9996a9fe1">recommendations from the teacher pay commission</a> appointed by GOP Gov. Eric Holcomb.</p>