CHICAGO - Indiana officials announced yesterday that the state ended fiscal 1992 with a $632.5 million surplus.
For the fiscal year ending June 30, the state reported balances of $138.9 million in the general fund, $165 million in the school aid fund, and $328.6 million in the rainy-day fund.
"The yearend results are gratifying," said Gov. Evan Bayh in a press release. "We can be proud Indiana has been able to deal with the ongoing impact of the national recession with our balances intact, without increasing taxes, and without materially curtailing state services."
The surplus follows enactment of cost-cutting measures designed to help eliminate a $160 million revenue shortfall projected for the fiscal 1992-93 biennium.
Earlier this year, Gov. Bayh implemented a $120 million spending-reduction program for the state's $12.4 billion general fund biennial budget. The program included 3% cuts in every state agency budget and a variety of cost-saving measures to address the projected revenue shortfall caused by the recession.
Mark Moore, the state's deputy budget director, said the state plans to use $45.9 million from its rainyday fund in fiscal 1993, which began July 1, to make up for the remainder of the shortfall.
He pointed out that while Indiana has a constitutional requirement to balance its budget, there is no required level for yearend positive balances. He explained that the state maintains the fund surpluses as a cushion against unforeseen increases in expenses or decreases in revenues.
Meanwhile, Gov. Bayh warned that the recession may not be over in Indiana. He said the state will continue to work "to keep spending under control," in order to avoid "the massive tax increases, state employee layoffs, shutdowns of government services, and budgetary gridlock that are afflicting so many other states."