INDIANAPOLIS (AP) — The Indiana Senate's lead budget writer says the state needs to save more money before it begins sending taxpayers automatic refund checks.
The automatic refund is triggered when the state socks away an amount equal to at least 10 percent of its planned spending. But Senate Appropriations Committee Chairman Luke Kenley said Thursday the state should hold more money in cash reserves before the tax refunds kick in.
Lawmakers approved Gov. Mitch Daniels' refund during last year's session but changed the original proposal to use a portion of the cash reserve to pay down teacher pension obligations.
Budget cuts, improved tax collections and a $320-million error left Indiana with an estimated $1.8 billion in cash reserves. Daniels estimates each taxpayer would get an additional $50 back.