INDIANAPOLIS—Today, the State Budget Committee received the updated revenue and Medicaid forecasts. Over fiscal years 2023 – 2025, the forecast adds an additional $1.5 billion in general fund revenue ($386.4M in FY 2023, $578.5M in FY 2024 and $540.4M in FY 2025). On top of this increase, the Medicaid forecast projects a $569M surplus in FY 23. When asked where the Medicaid surplus would be directed, Budget Director Zac Jackson suggested that it would be reverted to either the state general fund, deposited in the Medicaid Reserve Fund, or be used to offset the FY 24 Medicaid appropriation.
State Senator Eddie Melton (D-Gary) released the following statement:
“Indiana remains in a great fiscal position and our revenue continues to outperform expectations. All general fund revenue categories are forecasted to come in higher than projected in December, placing us in an even stronger position. It’s also good news that wages and salaries are projected to increase in the coming years, which is an especially positive trend for our labor force.
“I hope this forecast will reassure our Legislature that we have the means to deliver a more robust budget that adequately invests in both education and the health and welfare of Indiana residents, such as funding the recommendations of SB 1 and SB 4. With the additional Medicaid surplus forecasted for this FY, we’re going into the FY 24-25 budget with an additional $2B, on top of our already large combined balance, which is over 14% above our operating appropriations. A better target would be 10-12%, which would free up hundreds of millions of dollars.
“What is unacceptable is continuing to horde so much of Indiana taxpayers’ hard-earned money.”