What will lawmakers do with the $6.1B reserves

Lawmakers are preparing to return to the Statehouse next week for a special session that will focus on two key issues: abortion and how to spend some of the state’s $6.1 billion the state has in reserves.

That huge balance in the state’s reserve accounts is the result of higher than expected tax receipts as well as pandemic relief money the federal government sent to the state. Gov. Eric Holcomb wants lawmakers to send some of that money back to Hoosiers in the form of $225 tax refund checks.

Senate President Pro Tempore Rod Bray noted the nation’s 9.1% inflation rate reported in June hit Hoosier budgets hardest in food and gas. His chamber’s proposes caps on sales tax on gas, which automatically increases monthly based on the price of gas, at 29.5 cents per gallon until June 30, 2023 or the end of the fiscal year.

In addition, the Senate proposal would suspend the sales tax on residential utilities for six months, including the 7% sales tax on electricity, water, gas, internet and phone bills.