§ 4-10-21-2 — State spending cap formula

Indiana § 4-10-21-2

• Jurisdiction: Indiana
• Art. 10: STATE FUNDS GENERALLY
• Ch. 21: Business Cycle State Spending Controls

Text

(a) For the state fiscal year beginning July 1,
2003, and ending June 30, 2004, the state spending cap is equal to the
result determined under STEP THREE of the following formula:
STEP ONE: Determine the sum of the total of the appropriations
made from the state general fund and the property tax
replacement fund (including continuing appropriations) for the
state fiscal year beginning July 1, 2002, and ending June 30,
2003.
STEP TWO: Subtract from the STEP ONE result two hundred
forty-three million dollars ($243,000,000), which is the amount
of certain reversions made by state agencies.
STEP THREE: Multiply the STEP TWO result by one and
thirty-five thousandths (1.035).
(b) For the state fiscal year beginning July 1, 2004, and ending June
30, 2005, the state spending cap is equal to the product of the result
determined under subsection (a) multiplied by one and thirty-five
thousandths (1.035).
(c) The state spending cap for a state fiscal year beginning after
June 30, 2005, is equal to the product of the state spending growth
quotient for the state fiscal year determined under section 3 of this
chapter multiplied by the state spending cap for the immediately
preceding state fiscal year.
(d) The state spending cap imposed under this section is increased
in the initial state fiscal year in which the state receives additional
revenue for deposit in the state general fund as a result of the
enactment of a law that:
(1) establishes a new tax or fee after June 30, 2002;
(2) increases the rate of a previously enacted tax or fee after June
30, 2002; or
(3) reduces or eliminates an exemption, a deduction, or a credit
against a previously enacted tax or fee after June 30, 2002.
The amount of the increase is equal to the average revenue that the
budget agency estimates will be raised by the legislative action in the
initial two (2) full state fiscal years in which the legislative change is
in effect.
(e) The state spending cap imposed under this section is decreased
in the initial state fiscal year in which the state is affected by a decrease
in revenue deposited in the state general fund as the result of the
enactment of a law that:
(1) eliminates a tax or fee after June 30, 2002;
(2) eliminates any part of a tax rate or fee after June 30, 2002; or
(3) establishes or increases an exemption, a deduction, or a credit
against a tax or fee after June 30, 2002.
The amount of the decrease is equal to the average revenue that the
budget agency estimates will be lost as a result of the legislative action
in the initial two (2) full state fiscal years in which the legislative
change is in effect.

Legislative History

As added by P.L.192-2002(ss), SEC.4. Amended by P.L.146-2008, SEC.10.