State Ends Fiscal Year With $1.4B in Reserves

(photo courtesy of Dan McGowan)

The Indiana Auditor of State’s office says the state used nearly $900 million of its reserves to offset the revenue shortfall caused by the COVID-19 pandemic. In the state’s 2020 Year-End Report, Auditor Tera Klutz said Indiana ended the fiscal year with $1.4 billion in reserves.

The state started the fiscal year with nearly $2.3 billion in reserves. Klutz says the use of the reserves, coupled with spending restraints initiated by Governor Eric Holcomb helped the state avoid more drastic measures.

“Our strong reserves have sustained Indiana through the initial surge of the pandemic, and in light of the unexpected economic circumstances, the State is able to continue to offer essential services when our residents need it most,” Klutz said in a news release. “Responsible fiscal leadership leaves Indiana with a 9% reserve as we head into a new fiscal year facing more economic uncertainty.”

Holcomb issued the following statement after the report was released Thursday:

“As our state works to slow the spread of coronavirus, I’m grateful for the years of exceptional stewardship that has allowed Indiana to be financially prepared to face this storm. We will remain dedicated to ensuring Hoosiers receive services without interruption while maintaining Indiana’s trademark fiscal responsibility as we adjust to this new normal.”

State Representative Tim Brown (R-Crawfordsvile), who chairs the State Budget Committee and the House Ways and Means Committee, also issued a statement:

“The COVID-19 pandemic has put a strain on the state budget, but Indiana remains in a better financial position than most other states due to our longstanding commitment to responsible fiscal management. As we head into the upcoming fiscal year, state leaders will continue to be mindful of our responsibility to Hoosier taxpayers by allocating our resources efficiently and effectively, prioritizing funding for critical services like K-12 education and reducing government costs whenever possible.”

You can view the full 2020 Year-End report by clicking here.