State Budget Negotiators Receive a $2 Billion Surprise as Budget Talks Continue

WITZ RADIO NEWS IS AN AFFILIATE OF NETWORK INDIANA

INDIANAPOLIS -- Indiana suddenly has a lot more money to work with in the next state budget.

An updated forecast predicts Indiana will collect two-billion dollars more in the next two years than it expected in the last projection in December. Forecasters say the economy has bounced back faster than expected, especially manufacturing. And they expect the COVID vaccine and a pair of federal stimulus bills to accelerate the recovery.

Forecasters also expect Indiana will need 168-million dollars less than expected to cover Medicaid costs. They're now expecting the public health emergency caused by the pandemic to run through the end of July, which triggers more federal money for the state.

Budget negotiators were already trying to decide how to spend three-billion dollars in federal pandemic relief. President Biden signed that bill last month, after the House had already passed its version of the budget. The Senate bill includes 850-million dollars of that money, and Appropriations Chairman Ryan Mishler (R-Bremen) has said he wants to earmark more in the final version.

Legislators have been hoping to settle on a final spending plan by Wednesday.