State Repays Debt to Local Governments

Governor orders state to repay debt to local governments (Indianapolis, IN) Governor Mitch Daniels today ordered that the remaining $212 million long owed to local governments be repaid by the end of May, a year ahead of schedule. During an extended period of deficit spending, starting in 2002, state government delayed payments totaling $761 million to K-12 schools, higher education and local governments. Beginning in January 2006, the governor ordered repayments to begin. Since then, $518 million has been repaid: B7 $156 million owed to K-12 schools was repaid in January 2006 following the states successful tax amnesty program. B7 The remainder of the K-12 school debt, $160 million, was repaid in July 2006. B7 $131 million was returned to local governments in May 2007 B7 $40 million was returned to higher education throughout Fiscal Year 2007 and $31 million this fiscal year. The remaining $31 million will be distributed in the next fiscal year. The funds will be sent to the auditors in all 92 counties, who are responsible for distributing the appropriate share to the other taxing units. The state was scheduled to send $106 million to local governments this month but will now send $212 million, which will complete all that is owed. On the web: The amount each county will receive may be found at this link: http://www.in.gov/gov/files/Press/paymentdelaybycounty.pdf (Copyright 2007 Newsroom Solutions, LLC) Delivered by Newsroom Solutions RNS-05-16-08 1000CDT