The Indiana State Budget Committee released the December revenue forecast today. The report is projecting modest economic growth in the next three years.
“This revenue forecast confirms the growth we are seeing across our state and should be an encouragement to every Hoosier,” said Governor Mike Pence. “While the December revenue forecast projects economic growth for our state, Hoosiers may be assured that our administration will continue to exercise caution as we finalize our recommended budget for the next two years.”
The state’s revenue forecast follows a similar projection from Ball State University earlier this month. The BSU Center for Business and Economic Research‘s Indiana Economic Outlook 2015 Forecast has the Hoosier state on course to outpace the national GDP.
“I expect that Indiana will see record all-time employment in December of this year — a welcome holiday gift to Hoosiers,” said Michael Hicks, director of CBER. “Next year will bring record numbers in Hoosier employment and labor force.”
Additionally, the CBER report predicts a 3.4 percent increase in the state’s GDP and a 3.3 percent in personal income. Throughout next year, Hicks expects US GDP to grow an average of 2.7 percent, unemployment to drop to around 5.7 percent and 90,000 to 120,000 jobs to be created per month.
Both the governor and Hicks offered up a caveat of caution with these optimistic reports. Pence noted flat revenue in 2014’s fiscal year and the downward revision of the 2015 fiscal year which is estimated at $129 million based on the December 2013 estimate.
“We anticipate 2015 will be the best year of economic performance since 2007, but overall growth will remain slower and levels of employment relative to population will be far below the three decades prior to the recession,” Hicks said. “While it is far from certain, it is likely the United States is in a lengthy period of slower and more uneven economic growth than we have seen in several generations.”
Hicks also noted that sluggish economies in Asian and Europe, especially northern Europe, could prove detrimental to US and global recovery.
The 2015-2017 Revenue Forecast can be found at in.gov/sba.