State revenue continues fall in May

INDIANAPOLIS (Inside INdiana Business) — Indiana revenue fell short of the most recent projects in May. The Indiana State Budget Agency says General Fund revenues totaled more than $233 million last month, nearly 20% lower than the December revenue forecast and more than 16% lower than the same month last year.

The state continues to feel the pinch from the COVID-19 pandemic. In April, revenues were nearly $1 billion below estimates.

Collections in all categories, including sales tax, individual income tax, corporate tax, riverboat wagering and racino wagering, were all below the monthly estimate in March. The latter two continued to stay at $0 due to the Indiana Gaming Commission closing all casinos in mid-March.

“Overall, lower than expected tax collections across all categories combined to drive revenues below current year estimates and prior year actuals both on a
monthly and fiscal year-to-date basis,” the agency said. “While May tax collections mostly reflect April economic dynamics and continued stay-at-home orders, June will most likely be impacted by the rapidly changing economic outlook, the easing of stay-at-home restrictions and the deferral of payments to July.”

Year-to-date, the state has collected more than $13.5 billion, which is nearly 8% lower than the revenue forecast and 5.4% lower than collections through the same period in the previous fiscal year.

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