THE STATEHOUSE — In outlining Indiana’s 2019 Year-End Report, which highlights the state’s fiscal year ending June 30, 2019, Auditor of State Tera Klutz, CPA, announced Indiana ended FY19 with a budget surplus of $410 million allowing the state to close the books without utilizing reserves.
The Year-End Report, prepared by the Office of Management and Budget, shows Indiana maintaining reserves of approximately $2.3 billion or 13.9% of current year expenditures, representing an increase from FY2018.
“By continuing to operate our state in a fiscally responsible manner, Indiana has maintained reasonable reserves while addressing some of our most important challenges. As the state’s Chief Financial Officer, I am pleased that Indiana has maintained its AAA credit rating and remains a fiscal leader nationally,” said Klutz. “However we cannot get comfortable relying on our reserves to bail us out as there are still many challenges to confront. We must continue to find the most effective and efficient ways to offer needed services for all Hoosiers, especially those less fortunate.”
“I would like to take this opportunity to thank Former Budget Director Jason Dudich and Former OMB Director Micah Vincent for their outstanding contributions to the state’s financial processes. They were outstanding partners over the last 2.5 years. I look forward to working with newly appointed OMB Director Cris Johnston and State Budget Director Zac Jackson as we enter into Fiscal Year 2020,” Klutz added.
Office of Management & Budget Director, Cris Johnston added, “Fiscal discipline is now an expectation of all Hoosiers, and as the new Office of Management and Budget Director, I look forward to working with all state partners to maintain Indiana’s fiscal strength and stability.”
State Auditor Klutz also announced that Indiana has received the Government Finance Officers Associations’ Certificate of Achievement for Excellence in Financial Reporting for the 2018 Comprehensive Annual Financial Report (CAFR).
“Once again, I am very proud of the work completed by my office as well as our partners throughout state government. This award, which Indiana has received every year since 1993, serves as a testament to all Hoosiers that our state’s government is committed to transparent and honest accounting practices,” said Klutz.
This is the 26th consecutive year Indiana has received this designation.
To view the Fiscal Year 2019 Year-End Report and additional commentary click here.
To view the 2018 Comprehensive Annual Financial Report (CAFR) click here.
SOURCE: News release from the Office of Indiana Auditor of State
“As the former auditor of state I want to give thanks to Governor Holcomb and our state’s fiscal leaders,” said Lt. Gov. Suzanne Crouch. “Indiana remains in a nearly unmatched financial position. I applaud the Governor’s proposal to make major investments in our infrastructure, postsecondary institutions and Indiana State Fairgrounds. In taking these steps, we unlock future savings that position us well to address teacher compensation in future budgets.”
Governor Eric J. Holcomb offered the following statement regarding the 2019 fiscal year close out report outlined today by Indiana Auditor Tera Klutz, CPA:
“Indiana’s economy is on a roll, and our reserves are healthy because of robust revenue growth. It is of paramount importance that Indiana continue sound fiscal management to further fortify our strong fiscal position.
Therefore, I am recommending we use nearly $300 million of reserves to pay for several one-time capital projects and to finish the free-flow of U.S. Hwy. 31. We have an opportunity to reduce our ongoing costs by paying cash rather than borrowing for several projects approved by the Indiana General Assembly in this year’s legislative session. Paying for capital projects now maintains Indiana’s low debt burden, avoids lease obligations over the next 25 years and leads to taxpayer savings of more than $100 million.
Earlier this week, I discussed these recommendations with House Speaker Bosma and Senate President Pro Tem Bray, including my desire that the state maintain fiscally responsible reserves of nearly $2 billion or 12.2 percent of expenditures after putting aside money for the following capital projects:
- $50 million for the swine barn at the Indiana State Fairgrounds
- $73 million for the Purdue College of Veterinary Medicine teaching hospital
- $60 million for the Ball State University STEM and Health Professions facilities
- $30 million for the Ivy Tech Columbus main building replacement
In 2018, I made the commitment to improve access and safety on U.S. Hwy. 31 from Indianapolis to South Bend by eliminating all traffic signals and rail crossings. Our fiscal position allows us to provide approximately $78 million so the Indiana Department of Transportation can complete this transformational project.
I asked the legislative leaders to strongly consider my proposal when the Indiana General Assembly returns in January 2020. We will work over the next six months to demonstrate how the ongoing savings can be best used for tackling our priorities in the next budget, such as providing meaningful increases in teacher compensation so Indiana is competitive with neighboring Midwestern states.
I am grateful to state agency leaders and employees, legislative leadership and Auditor Klutz who all help maintain our position as the fiscal envy of the nation.”