Indiana sees big budget surplus jump as tax refund eyed

INDIANAPOLIS (AP) — Indiana’s surging tax collections over the past year have pushed state government’s budget surplus up more than 50% to about $6.1 billion.

The jump from last year’s record high of $3.9 billion in cash reserves announced Friday comes as the Republican-dominated Legislature is set to soon consider a proposal from Gov. Eric Holcomb for distributing $225 payments to taxpayers for what he calls “inflationary relief.”

The proposed payments could cost the state about $1 billion, but Holcomb has said they are affordable.

Democrats have questioned the helpfulness of the state payments because of slow distribution and have pushed for suspending Indiana’s 62 cents-per-gallon in gasoline taxes, saying that would provide more immediate relief.