Indiana's Unprecedented Economic Success Triggers Taxpayer Refund

The state announced this week figures from the close of the 2021 fiscal year.

Shutterstock photo.

(INDIANAPOLIS) - Indiana has closed the 2021 fiscal year with billions of dollars in reserve. 

State Auditor Tera Klutz announced Wednesday that Indiana closed the 2021 fiscal year with reserves of $3.9 billion. 

“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,” added Klutz. 

While the final refund amount will not be calculated until later this year, early estimates suggest the refund could be as high as $170 per individual filer or $340 for joint filers. In Indiana, reserve balances in excess of 12.5 percent of the next year's budget is required to be split, with half dedicated to pay down pension obligations and the other half given back to taxpayers.

According to the report, about $545 million will go to taxpayers and another $545 million toward pension liabilities. This will be the second time Hoosiers will receive an automatic taxpayer refund since the law passed in 2011.   

Holcomb, along with Lt. Governor Suzanne Crouch and State Reps. Randy Frye (R-Greensburg), Randy Lyness (R-West Harrison) and Cindy Ziemke (R-Batesville), released the following statements regarding the close to the fiscal year. 

Governor Eric Holcomb

"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."

Lt. Governor Suzanne Crouch 

"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.”

Randy Frye (R-Greensburg), Randy Lyness (R-West Harrison) and Cindy Ziemke (R-Batesville)

"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 potential rainy days, all without growing government. These responsible policies has 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).