From Maureen Hayden reported in the Jeffersonville News and Tribune:
If you had more money in your checking and savings accounts than you thought you were going to have a year ago, would you look for ways to spend it or stash it away in fear of another economic tsunami?
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That’s a somewhat oversimplified explanation of what the Indiana General Assembly faces when it comes back to the Statehouse in January to a situation the budget-making Legislature hasn’t seen in years.
Late last week, state Auditor Tim Berry officially announced in his annual end-of-the-fiscal year report what Gov. Mitch Daniels had already happily revealed: Unlike some neighboring cash-strapped states, Indiana has a structural surplus (the amount of revenue exceeding ongoing expenses) of about $500 million. What’s more, the state’s overall reserves top $2.15 billion.
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You can expect more crowing about the state’s fiscal health this summer and fall from Republican candidates on the campaign trail (who may forget to credit the $2 billion in federal stimulus funds that Indiana took during fiscal years 2009-11). And some criticism as well, from Democrats who argue the surplus and reserves came with the cost of cuts to essential services to the public (and who may forget to mention the fiscal mess that Daniels inherited when he took office in 2005.)
That’s just talk. The hard part, Ketzenberger said last week, comes in January when the budget-writing session begins. That’s because it’s easier to say to “No” when you don’t have the money to spend than it is to say “No” when you do.
“The new governor and legislators still will certainly have a tough time balancing the budget, but this time it will be in the form of resisting temptation to spend instead of identifying ways to cut expenses,” Ketzenberger told reporters. “There will likely be pent-up demand among many constituents for new or additional spending, and it is harder for policymakers to say no to them when there are surplus funds.”
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http://newsandtribune.com/statenews/x1447685581/Maureen-Hayden-State-surplus-creates-temptation-to-spend-not-cut
