Indiana's Fiscal Year 2025 Report Reveals $2.5 Billion in State Reserves

The State of Indiana has closed its Fiscal Year 2025 with a surplus of approximately $2.5 billion in state reserves, according to an announcement by State Comptroller Elise Nieshalla.

The year-end fiscal report reveals that the reserves include:

• $676 million General Fund.
• $41 million Medicaid Contingency and Reserve.
• $706 million Tuition Reserve.
• $1.1 billion Rainy Day Fund.

"Hoosiers can rest assured that Indiana continues to be in a solid financial position," Nieshalla said. "Despite a lower-than-expected revenue forecast, Governor Braun and the state legislature's disciplined approach to forecasting, combined with making needed adjustments in spending, positioned us to close the year with a reserve of 11 percent of expenditures."

According to Nieshalla, Indiana was able to proactively respond to the lower-than-expected revenue forecast by implementing a biennium-wide 5% appropriation reduction going forward. This reduction was collaborated on with the Office of Management and Budget and the State Budget Agency.

The State Budget Agency expects the State of Indiana to be short $2 billion in revenue over the next two years, underscoring the importance of maintaining a healthy reserve fund.