Senate Budget Priorities• Honestly Balanced Budget• Promote Hoosier Job Growth• Fund Our Priorities• Prepare For Indiana’s Future
U.S. Credit Ratings As of March 4, 2013 Vermont Washington AA+/Aaa/AAA AA+/Aa1/AA+ Maine Montana North Dakota AA/Aa2 AA/Aa1/AA+ (AA+/Aa1/NR) /AA Oregon Minnesota AA+/Aa1/AA+ AA+/ Aa1/ West Virginia NH AA/Aa1/AA+ Idaho Wisconsin New York (AA+/Aa1/AA) South Dakota AA+ AA/Aa2/AA Michiga AA/Aa1/AA+ AA/Aa2/ MA AA+/Aa1/AA+ Wyoming (AA+/NR/AA) n (AAA/NR/NR) AA AA- /Aa2/AA- Pennsylvani RI AA/Aa2/AA Iowa a CT AA/Aa3/AA Nevada Nebraska (AAA/Aaa/AAA) AA/Aa2/AA++ Ohio AA/Aa2/AA+ NJ AA-/Aa3/AA- (AAA/NR/NR) Illinois Indiana Utah A-/ (AAA/ AA+/Aa1/ DE AAA/Aaa/AAA AAA/Aaa/AAA Colorado Aaa/ AA+ A2/ MD * AAA/Aaa/AAA (AA/Aa1/NR) A AAA) Kansas Missouri* Kentucky DC A+/Aa2/AA- California (AA+/Aa1/AA) AAA/Aaa/AAA (AA-/Aa2/A+ A/A1/A- Virginia* AAA/Aaa/AAA Arizona Tennessee (AA-/Aa3/NR) New Mexico Oklahoma AA+/Aaa/AAA AA+/Aa2/AA+ Arkansas North Carolina AA+/Aaa/NR AA/Aa1/NR AAA/Aaa/AAA Alabama Georgia AA/ AAA/ South Carolina Aa1/ Aaa/ AA+/Aaa/AAA Louisiana AA+ AAA Texas AA/ AA+/Aaa/AAA Aa2/ Alaska AA AAA/Aaa/ AAA Puerto Rico Mississippi Baa3/BBB/BBB+ AA/Aa2/AA + Florida Hawaii AAA/Aa1/AAA AA/Aa2/AA AAA AA+ AA ( ) indicates states with no G.O. debt. Ratings Source: S&P / Moody’s / Fitch Ratings are hypothetical. AA-* Maryland, Virginia, and Missouri on negative watch A+ or lower
Appropriation-Backed Debt Appropriation-Backed Debt Debt Outstanding Issuing Entity (As of 12/31/12) Transportation Finance Authority $1,215,646,298 Public University (Fee-Replaced) $1,192,991,057 State Office Building Commission $489,727,558 Indiana Bond Bank (Moral Obligation) 2 $449,910,000 Recreational Development Commission $27,190,000 Total $3,375,464,913 Appropriation-Backed Debt - Revenue Supported Debt Outstanding Issuing Entity (As of 12/31/12) IFA-Stadium & Convention Center 1 $977,065,000 Indiana State Fair 1 $62,165,000 Total $1,039,230,0001 Debt Service anticipated to be paid fully by revenue sources but also are backed by appropriations2 Moral obligation to replenish reserve accounts if used for debt service.
NOTE: Figures do not include transfers from Automatic Taxpayer Refund
Affordable Care Act by the Numbers Percentage of Number of Hoosiers Federal State Total Year Hoosier on Medicaid Cost Cost Cost Population 2012 1 Million 16% $4.3 Billion $2.2 Billion $6.5 Billion 1.2 Million 2015 (no expansion of 19% $6.4 Billion $3.3 Billion $9.7 Billion eligibility) 1.8 Million ? (expand eligibility to 28% ? ? $13.5 Billion 138% of poverty)Source: Milliman “Affordable Care Act (ACA) – Medicaid Financial Impact Analysis Update” Sept. 2012 Note: As a comparison, the cost of the K-12 formula is approximately $6.5 Billion per year.
Honestly Balanced Budget• $29.5 Billion Two-Year Budget• Ongoing Revenues Exceed Ongoing Expenditures• Ends Biennium with $2.5 Billion in Reserves Includes $400 million for transportation needs and $600 million for potential health care needs over the biennium
Promote Hoosier Job Growth• Cuts individual income tax rate from 3.4% to 3.3%, effective Jan. 1, 2015 ($150 million per year)• Eliminates state inheritance tax, retroactively effective to Jan. 1, 2013 ($150 million per year)• Cuts financial institutions tax rate from 8.5% to 6.5%, phased in over four years, starting in 2014 (Contained in SB 552; $19 million per year)• Includes funding for vocational education and workforce development initiatives contained in SB 465 (Indiana Works Councils - $6M over the biennium) and HB 1002 (Indiana Career Council - $750,000 over the biennium)
Funding Our Priorities: K-12 Education• Increases K-12 funding by $331 million over the biennium. 2% increase in FY 2014 and 1% increase in FY 2015• Provides performance funding opportunity for every public school.• $10 million per year for school resource officers (SB 1)• Funds Principal Leadership Academy (SB 402)
Funding Our Priorities: Higher Education• Increases operating funds by $99 million over the biennium Operating dollars include $61 million in performance funding for institutions (same as current level).• Authorizes $383 million in university capital projects• Financial Aid: • Increases student aid by $43 million in FY 2014 and $28 million in FY 2015 • Provides $230 million for 21st Century Scholars over the biennium
Funding Our Priorities: Roads & Infrastructure• Provides additional $112 million to INDOT and $101 million to local roads to match local commitment Reallocates 1% of the sales & use tax distribution to the Motor Vehicle Highway Fund Phases in a replacement of the Motor Vehicle Highway Fund appropriation for the State Police and BMV with state general fund dollars over two years• Invests $200 million per year for two years into the Major Moves 2020 Trust Fund for major highway expansion projects.
Funding Our Priorities: Roads & Infrastructure Currently Funded Major Potential Transportation Capital Projects Corridor Opportunities• Milton-Madison Bridge ($52M) • Widen I-70 from 4 lanes to 6 lanes, Illinois to Ohio ($1.35B)• US 31 Kokomo ($155M) • Widen I-65 from 4 lanes to 6 lanes,• SR 25 Hoosier Heartland ($327M) Kentucky to I-80/94 ($1.97B)• US 31 Plymouth to South Bend • Indiana Commerce Connector ($223M) ($1.52B)• US 31 Hamilton County ($346M) • I-69 Bloomington to Martinsville ($306M)• I-69 Crane to Bloomington ($400M)
Funding Our Priorities: Child Protection• Increases funding for DCS by $30 million per year to provide: • Additional case managers and supervisors • Improved services for children with severe mental and behavioral health needs • Improvements to child abuse hotline• $10 million per year for school resource officers (SB 1)
Prepare for Indiana’s Future: Health Care• Fully funds the Medicaid forecast• Creates the HIP Savings Account, consisting of: • HIP fund balance (more than $200 million) • Any 2013 Medicaid appropriation reversions (approx. $234 million) • HIP annual cigarette tax revenues beginning Jan. 1, 2014 ($120 million per year)• Includes provisions that let the governor negotiate with federal government to receive block grant for any Medicaid expansion. (SB 551)• Requires General Assembly approval to release funding for any negotiated health care plan.
Prepare for Indiana’s Future: Paying Taxpayer-Funded Debt• 100% of excess surplus (approx. $97 million) in FY 2013 goes to Pension Stabilization Fund• Repays $50 million Public Deposit Insurance Fund loan (SB 552)• Pays back charter school loan ($80 million)• Provides $200 million cash funding for university capital projects