Budget leader says new tax forecast could mean spending cuts

INDIANAPOLIS (AP) – One of Indiana’s fiscal leaders is warning that some disappointing news could be coming for the new state budget.

An updated tax revenue forecast will be presented Thursday to the State Budget Committee. That projection is a key element as lawmakers work to reach agreement on a new two-year state budget by the General Assembly’s adjournment deadline in a couple of weeks.

Senate Appropriations Committee Chairman Luke Kenley says he expects the forecast will show slower growth in state tax collections. That could force cuts to be made from spending plans that lawmakers are considering.

State reports show tax collections have been below expectations for seven of the past nine months. March’s figures leave state revenues about $109 million, or 1.1 percent, below projections for the current budget year.