Indiana Economic Outlook Improves Although Gaming Revenues Down
It's been a while since Indiana reported revenues exceeding projections, but that's what happened in May.
Indiana's State Budget Agency reported today that the state took in $1.2 billion, roughly $151 million more than forecasters projected.
The increase covers a nearly $90 million revenue shortfall in April.
"It is clear that individual income tax collections have improved dramatically in 2011 compared to 2010 due to strong employment and income growth," agency director Adam Horst stated in a written statement. "Payroll withholdings, the largest component of individual income tax collections, have consistently grown in excess of 6 percent throughout 2011. For April and May, individual income tax collections grew 20 percent compared to the same time period for 2010."
In this fiscal year, which ends at the end of June, Indiana's collected $128 million more in taxes that the state's forecasting committee projected.
Revenues are also up by over 9 percent this year than last.
The only down side to the forecast was gaming revenues for the state.
Horst said riverboat wagering tax collections again fell short of the monthly target, and now lag behind 2010 revenues by 3.4 percent.
"On the other hand, racino (horse racing) wagering tax collections continue to exceed monthly targets, and are running 7.4 percent ahead of 2010 revenues," Horst said. "Through May, total gaming revenues trail the revenue forecast by $13 million and are running $8 million behind collections for the same time period last year."
Northwest Indiana is home to five casino boats along Lake Michigan.
The stale gaming numbers come at a time when Illinois Gov. Pat Quinn is considering signing a bill that would dramatically increase casino licenses in the state.
Under the proposed plan, a casino could be approved for a south suburban location, as well as for downtown Chicago. Either location could eat into revenues taken in by casinos in Northwest Indiana.