We got trouble, my friends, with a capital T. The Indiana state budget closeout for fiscal 2020 was held in mid-July, so we have a good idea of how bad things are.
Revenues fell 8 percent below forecast for the year, 23 percent from March through June. We used $850 million in balances to cover that shortfall, so our state savings account now has $1.4 billion, less than 10 percent of revenues. It hasn’t been that low since 2011. Spending cuts created more than $800 million in reversions, or appropriations that were not spent. Reversions haven’t been this high since 2011, either.
Now that we know the numbers, we can take a look ahead. Let’s do some “supposing” about what could happen during this fiscal year 2021, and during the next biennium.