State tax revenues fell below projections in May but the decreases were expected after big gains in April that were due in large part to the speed at which the Indiana Department of Revenue had been processing individual income tax returns.
State Budget Director Adam Horst said tax revenues are on track to meet projections released last December and are ahead of the estimates that were used to craft the current, $28 billion two-year state budget. The fiscal year ends June 30.
During the first 11 months of the fiscal year, state tax revenues have increased 6.3 percent compared to the same period last year. Current projections called for increases of 6 percent.
Although tax collections are generally on target, state agencies are on track to spend less than appropriated by the General Assembly, Horst said. That means the state will likely finish the year by building on its existing surplus.
Gov. Mitch Daniels expects to use that surplus to provide refunds to Hoosiers. Those could be as much as $65 per taxpayer.
Lesley Weidenbener is managing editor of TheStatehouseFile.com, a news service powered by Franklin College journalism students and faculty.