INDIANAPOLIS—Today, State Comptroller Tera Klutz held a press conference to report the 2023 fiscal year-end results for the state. Indiana ended FY23 with $2.9B in reserves.
Budget Committee Member State Senator Fady Qaddoura (D-Indianapolis) released the following statement:
“Indiana’s fiscal position remains strong, and the FY 2023 revenue forecast is one of the most accurate in the state’s history. The economy is exactly where we expected and the state is doing very well.
“That’s why I’m disappointed at the administration’s announcement that nearly $700M in Medicaid reversions was transferred to prop up the general fund balance. In light of Republican concern that Medicaid growth is out of control, putting that money in the Medicaid Reserve Fund would have been a better way to establish long-term, robust support for the program. At a time when tens of thousands of Hoosiers, including children, are being kicked off Medicaid, we can’t do too much to provide a cushion of support for Medicaid.
“Our state must work harder to spend dollars more productively instead of continuing the trend of hoarding billions of taxpayers’ money. Prudent reserves are typically between 10% and 15%, and the administration has chosen to pile up over 13% in FY 2024 and 2025. The difference between 13% and a more reasonable combined balance of 11.5%, like in past budgets, is hundreds of millions of dollars. That money could have been used to provide traditional public schools with a more equitable funding increase, provide doula services to address our increasing infant and maternal mortality rates, and adequately fund behavioral and public health services. Indiana has billions in reserves and the state’s fiscal condition is strong. Unfortunately, Republicans would rather keep taxpayers’ money than adequately invest in programs and services our citizens need so they can flourish as well.”