§ 4-10-18-3 — Determination of adjusted personal income and annual growth rate

(a) Each year, the budget director shall
determine the adjusted personal income and the annual growth rate for
Indiana using the current reporting period.
(b) The budget director shall determine the adjusted personal
income for the current reporting period in the following manner:
STEP ONE: Calculate the average implicit price deflator for the
gross domestic product for the current reporting period by totaling
the implicit price deflator for the gross domestic product for each
quarter of the current reporting period and dividing that total by
four (4).
STEP TWO: Calculate the remainder of the total state personal
income for the current reporting period minus any transfer
payments made in Indiana for the current reporting period.
STEP THREE: Calculate the quotient of the result of STEP TWO
divided by the result of STEP ONE.
STEP FOUR: Calculate the product of one hundred (100)
multiplied by the result of STEP THREE. This product is the
adjusted personal income for the current reporting period.
(c) The annual growth rate for a particular reporting period equals
the quotient of:
(1) the remainder of:
(A) the adjusted personal income for the particular reporting
period; minus
(B) the adjusted personal income for the twelve (12) month
period immediately preceding the current reporting period;
divided by
(2) the adjusted personal income for the twelve (12) month period
immediately preceding the current reporting period.
The annual growth rate shall be expressed as a percentage and shall be
rounded to the nearest one-tenth of one percent (0.1%).
(d) If the bureau changes the base year on which it calculates the
implicit price deflator for the gross domestic product, the budget
director shall adjust the implicit price deflator for the gross domestic
product used in making the calculation in subsection (b) to compensate
for that change in the base year.
As added by Acts 1982, P.L.22, SEC.1. Amended by
P.L.205-2013, SEC.57.