With a $500 million budget surplus and $2 billion in reserves, Indiana Governor-elect Mike Pence has pledged to give back some of that money when he takes office next week by cutting personal income taxes.
“An across-the-board tax cut for all Hoosiers would send a strong signal that we are managing our funds wisely and also reducing the tax burden on our taxpayers and businesses,” the former U.S. Congressman said while campaigning to replace outgoing fellow Republican Mitch Daniels as governor.
Indiana is not alone going into the 2013 legislative session with extra money in the coffers and policy makers figuring out how to spend it. Through a combination of downsizing, changes in tax policy and sometime the luck of having energy and commodities, some states have weathered the recession better than others.