Indiana taxpayers can expect a windfall, thanks to surplus

Indianapolis, IN — Hoosier taxpayers will receive some of their money back from the State of Indiana.

State Auditor Tera Klutz says about $500-Million will go back to taxpayers in the form of refundable tax credits, thanks to Indiana finishing the fiscal year at the end of June with a nearly $4-Billon surplus.

“Indiana once again exceeded expectations and soared through the recession with one of the fastest recoveries on record to end with a cash reserve of $3.9 Billion at the end of June,” said Klutz. “Indiana is poised to make an excess reserve transfer of $1.1 Billion, which will be split between retirement funding and a refundable income tax credit for Hoosier taxpayers.”

Although the final refund amount will not be finalized until later this year, it is estimated that those who filed as individuals will receive $170 while couples who filed jointly would get $340.

Indiana Governor Eric Holcomb, Lt. Governor Suzanne Crouch, and local state representatives Randy Frye, Randy Lyness, and Cindy Ziemke released the following statements in reaction to the conclusion of the fiscal year and the surplus:

“Because of the strong position Indiana occupied going into last year’s unprecedented global pandemic and partnerships at all levels of government, we now find ourselves at a place of full employment and growing economy. State fiscal leaders deserve high praise for closely monitoring financial forecasts and then quickly adapting to the facts on Main Street, Indiana.

“We quickly pivoted from managing through a once anticipated recession due to the ramifications of the COVID-19 pandemic to closing the state fiscal year with $3.9 Billion in combined reserves. Now, with our 19th straight balanced budget, we are working on everything from mental health programs and health care supports to record increases in K-12 tuition support. We’re investing in state public facilities and infrastructure projects statewide on a level never seen before all the while doing everything we can to create a highly-skilled workforce to fill the open jobs of today and tomorrow.

“Thanks to everyone’s diligent approach, including a bullish private sector, Indiana is positioned to begin the 2022 state fiscal year in a strong financial position that will benefit Hoosiers for years to come,” said Governor Eric Holcomb.

“As the former Auditor of State of Indiana, I’m elated to see the 2021 fiscal year close with $3.9 Billion in our reserves. Our current Auditor of State, Tera Klutz, along with fiscal leaders in the State Budget Agency, General Assembly,  and throughout state government deserve praise for being good stewards of the taxpayer dollar. I’m happy to see a portion of this reserve being credited to Hoosiers,” said Lt. Governor Suzanne Crouch.

“Thanks to more than a decade of conservative leadership and budgeting, Indiana weathered the economic uncertainties of this past year and can now put money back in Hoosier taxpayers’ pockets. We are truly blessed to be in this enviable financial position, and I’m looking forward to exploring future tax cuts and reforms next session,” said State Rep. Randy Frye (R-Greensburg).

“This session, we funded Hoosier priorities, paid down debt, and prepared for potentially rainy days, all without growing government. These responsible policies have helped ignite Indiana’s economy, which has helped put our state in a position to refund taxpayer money. These refunds are a testament to our continued efforts to keep Indiana moving in the right direction and do what’s right by Hoosiers,” said State Rep. Randy Lyness (R-West Harrison).

“Indiana continues to carefully maintain our prudent reserves that were key in helping us navigate the COVID-19 pandemic. With our economy surging forward and revenues increasing, it’s great to know Indiana will provide a well-deserved tax refund to hardworking Hoosiers,” said State Rep. Cindy Ziemke (R-Batesville).