Indiana finishes fiscal year with significant surplus and $4 billion in reserves – WFYI

Indiana finishes fiscal year with significant surplus and $4 billion in reserves  WFYI

Indiana's strong fiscal year leaves the state with a $1.86 billion surplus and new debate over funding roads, schools and taxpayer relief. Indiana is ending the 2026 fiscal year with a budget surplus of about $1.86 billion, a 174% increase from last fiscal year. The state is also ending the fiscal year with nearly $4 billion in reserves, which is up 60% from last year, according to the latest report. Gov. Mike Braun attributes this positive budget analysis to cutting government spending by reorganizing certain state agencies and increases in revenue collections. He says that now lawmakers will have some flexibility during next year’s budget session when deciding where to appropriate funding. “It gives us the option on difficult places like infrastructure, reining in healthcare costs, early childhood learning, to invest, give some relief to taxpayers,” Braun said Wednesday after the fiscal announcement.

However, Democrats said the dramatic increase in reserve funding means the state is sitting on funds when they should be going toward needed services including childcare, healthcare, and K-12 education. “Hoosiers don’t pay the state their hard-earned money to watch politicians sit atop a pile of cash and brag about how high it goes,” said Rep. Ed DeLaney (D-Indianapolis). “They contribute their tax dollars with the expectation that the state will use it to invest in making