Indiana to pay millions owed local governments

Indiana to pay millions owed local governments

Story Published: May 16, 2008 at 11:07 AM EDT

Story Updated: May 16, 2008 at 12:45 PM EDT

By Peter Neumann

INDIANAPOLIS (AP) - The state will pay off a remaining $212
million owed to local governments by the end of May, a year ahead
of schedule.

Gov. Mitch Daniels says tax collections in March and April were
strong and he's confident the state will end the fiscal year on
June 30 with a fourth consecutive budget surplus.

He says that means the state can accelerate the final repayment
of debts once owed to schools, universities and local governments.

During an extended period of deficit spending earlier this
decade, the state delayed payments totaling $761 million to those
entities to prop up state budgets. It's essentially a bookkeeping
maneuver that pushes spending obligations into future budget cycles
so they don't count against the current one.

The state has repaid $518 million of those debts since 2006.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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