State Revenue Nearly $1 Billion Below Forecast Due To Delayed Tax Filing, Business Closures
The total revenue generated by the state in April is nearly 50 percent less than projected. The state’s budget director says, it’s hard to predict what might happen in May.
The state was essentially on track to meet projections even after March revenues. But with April’s expected drop, the state is now 7 percent – nearly $1 billion – below projections.
Indiana Office of Management and Budget director Cris Johnston says nearly 80 percent of that is because of pushing back the tax filing deadline from April to July. The rest of that is reflected in other tax sources – including sales tax, which is reported on a one-month delay.
“It is difficult to estimate how much more of that impact there will be in May collections, but it will be more reflective of an entire month’s effect of our ‘Stay-At-Home’ policy and business closures,” Johnston says.
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Johnston says state agencies will soon be asked to set significant spending reductions. He says agencies are spending from their appropriations, but will soon rely on the budget surplus.
This is a rapidly evolving story, and we are working hard to bring you the most up-to-date information. However, we recommend checking the websites of the Centers for Disease Control and Prevention or the Indiana State Department of Health for the most recent numbers of COVID-19 cases.