State leaders say they’re cautiously optimistic about Indiana’s fiscal future after a new revenue forecast unveiled Thursday predicts two to three percent growth in the next budget cycle.
That growth would mean more than $800 million in new money over the next two years.
But Senate Appropriations Chair Luke Kenley says even that kind of increase shouldn’t start a spending frenzy. He notes that even before the forecast he’s been receiving budget requests that total almost double that amount.
“I think it’s going to test the legislature’s ability to be disciplined and keep Indiana financially strong to come up with the right answers and still meet the priorities that we all want to serve if we can,” Kenley said.
Governor Mike Pence says Hoosiers should be encouraged by the revenue forecast’s projections.
“But I still believe that it’s prudent for us to exercise caution as we craft our state’s two year budget,” Pence said.
Democrats say Republican leadership’s single-minded adherence to maintaining a $2 billion surplus will continue to cast doubt on its funding priorities, even with a positive revenue projection.