State to pay debt to local governments a year early

Remaining debts the state of Indiana owes to local governments will be repaid a year ahead of schedule, Gov. Mitch Daniels announced May 16. \nThe state was on schedule to send $106 million to local governments this month to repay its debts to them, but because of the state’s financial condition it will repay the full $212 million it owes now, according to a May 16 press release.\n“We’re watching every penny very carefully, revenues are running ahead of forecast somewhat, and meanwhile spending has been held below budget,” Gov. Daniels said. “The combination gives us confidence we are going to turn in a fourth consecutive balanced budget and surplus this year.”\nDaniels said the money is being paid back now rather than later because of confidence in the state’s fiscal condition and because the payment could be of help to the local governments.\n“For local governments, we thought this cash arriving early might help them, and I’ve asked the budget office to see that it’s distributed promptly,” Daniels said.\nIndiana is the only Midwest state in the black financially, Daniels said, and is even running a surplus of about $1 billion.\n“This is in stark contrast to every state around us,” Daniels said. “They’re raising taxes in Illinois, Minnesota just passed the biggest tax increase in history, education has been slashed in several nearby states. We’re just determined not to let Indiana get in that position.” \nBrad Rateike, the governor’s deputy press secretary, said the repayment of these debts will also help out Indiana’s economy.\n“This can indirectly help keep property tax bills down since the state is giving the money to local units of government earlier so that in areas where property tax bills may be delayed, these local units of government may not have to borrow money to pay for local expenses,” Rateike said in an e-mail.\nThe amount of money Monroe County is expected to receive from the repayment is estimated to be about $3.78 million, according to a document from the state office.