Messmer Column: Indiana's fiscal discipline pays off for Hoosiers

Local Sources- On this weeks Messmer Column, State Senator Mark Messmer (R-Jasper) discusses Indiana's fiscal discipline pays off for Hoosiers. 

In Indiana, we pride ourselves on being one of the most fiscally responsible states in the nation, which helps make our state one of the most affordable places to live in the country. This week, we continued that effort by paying down $2.5 billion dollars in unfunded pension liabilities. 

In recent years, Indiana's revenue has been outpacing expectations, leaving the state with a surplus. This excess money has been used in a variety of ways, including two automatic taxpayer refunds and paying down obligations to our Pre-1996 Teachers' Retirement Fund. 

By using excess revenues to pay down debt, we are moving up the timeline for when these pension obligations no longer require state General Fund support. This means we are moving closer to freeing up an extra $1 billion in our yearly budget. Once the Pre-1996 Teachers' Retirement Fund is fully funded and self-sustaining, we can explore additional uses for these funds like additional resources for Hoosiers, transformational projects or cutting taxes.

In addition to paying down pension debt, this year we passed House Enrolled Act 1002 to phase down Indiana's income-tax rate to 2.9%, tied for the lowest rate in the nation. This phased-in tax reduction is contingent on state revenue continuing to grow, ensuring we are still practicing the fiscal responsibility that got us here.

Being able to simultaneously cut taxes and pay down debt is an extraordinary feat and shows the strength of our fiscally-conservative approach to government. When we continue to pass balanced budgets and commit to working within our means, all Hoosiers benefit.

As your state senator, I will continue to advocate for policies that are in the best interest of taxpayers, and I look forward to exploring the options our financial freedom will allow us in the years ahead. 

As always, feel free to contact my office directly with your questions or concerns at [email protected] or by phone at 800-382-9467.