While states like Illinois and California are struggling with large amounts of public debt, Indiana’s tax-supported debt ranks among the lowest in the nation, according to Moody’s annual Investor Service State Debt Medians report.
“Keeping a strong handle on our tax-supported debt is a mark of good day-to-day public service, and proves we’re managing our state budgets with prudent fiscal management and responsibility,” said Governor Mike Pence. “Over the past decade, our state has established a history of being a good fiscal steward for the people of Indiana, and this report is just another indicator that we are consistently honoring that trust.”
Many states are struggling with increasing public debt per capita to grow their economies, but Indiana is growing and diversifying its economy in a way that efficiently manages its existing tax base. Unlike other states, Indiana has not over committed the revenue it takes in from taxpayers.
“In keeping our tax-supported debt low, Indiana can be more flexible and nimble in reacting to market and economic changes, including weathering emergencies or capitalizing on opportunities in an economic expansion,” said Dan Huge, director of the Indiana Finance Authority.
Citizens in neighboring Illinois, for example, are burdened with $2,522 of tax-supported public debt per household. Whereas in Indiana, tax-supported debt ranks in at $463 per Hoosier household.
“In a nutshell, the data shows Indiana is growing its economy without financially strapping future generations,” said Mark Pascarella, director of debt management with the Indiana Finance Authority.
The Moody’s report was developed based on an analysis of calendar year 2015 debt issuance and fiscal year 2015 debt service. Indiana was also noted in the report for its AAA credit rating, another indicator of Indiana’s smart financial management.