Indiana State Finances

Watchdog Indiana Home Page Population Data Consumer Price Index State Long-Term Bonded Debt Data Selected State & Local Revenue Data State Cash Revenue Data State Cash Spending Data

A Cash Flow Data (CFD) study is a tool that the Informed Citizen can use as guide to organize an analysis of the cash revenues and cash spending of the Indiana state government.

The most useful analysis of government revenues and spending is devoted to the movement of cash through application of the "Analysis of Cash" accounting approach. Governmental accounting typically focuses on the inflow and outflow of working capital according to accounting approaches that are hard to understand and are sometimes misleading. The Informed Citizen is best served by a cash analysis of the revenues taken from his or her paycheck and billfold and all the various ways these revenues are directly spent. For this reason, the data presented in this website reflects the movement of cash only. 

A CFD study also focuses on all revenues and is not limited to just taxes. The Informed Citizen knows that the state government takes money from his or her paycheck and billfold in a variety of ways, all of which are not labeled taxes.

What about the proportion of cash revenues paid not by individual citizens, but by businesses? Should cash revenues be divided between those that come from individual citizens and those that come from businesses? The Informed Citizen knows that any such division is misleading because the burden of government revenues is always carried by the individual citizen. If a business is not successful in passing along its revenue burden to the individual citizens who buy its products or services, then the citizens suffer through job loss when the business must close its doors. For this reason a CFD study does not separate those cash revenues directly paid by individual citizens and businesses.

A similar line of reasoning applies to state government cash revenues that come directly from the federal government. These revenues are not separated from those that come from individual citizens simply because individual citizens ultimately provide all federal revenues.

Population Data should be used in conjunction with a CFD study. This data is needed to compute average revenues and spending per citizen for comparison with the rate of inflation.

The rate of inflation should be used as the benchmark for analyzing the Indiana cash revenues and spending. Any per capita annual cash revenue and spending increases should be in line with the rate of inflation.

Indiana Revenue cash flow information (as well as selected state and local revenue data) is included for selected fiscal years. Also included is Indiana Spending cash flow information and information about the Long-Term Bonded Debt assumed by Indiana.

Finally, some Statistical Calculations using the various data categories are included to demonstrate comparison methodologies.

The two tables listed next compare Indiana cash revenues and spending for each fiscal year from 1988 through 2005. TOTAL revenues and spending (including both state and federal monies) are presented.

State of Indiana 1997-2005 Total Revenues Versus Total Expenditures Comparison

(includes governmental fund types of both the primary government and discretely presented component units)

(amounts expressed in thousands of dollars)

(compiled January 23, 2006)

Fiscal Year

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

Total Revenues

15,392,544

16,553,927

17,755,902

18,370,179

17,532,315

19,066,688

20,616,780

21,585,287

Total Expenditures

15,033,388

16,458,543

17,818,437

19,269,126

18,450,674

19,251,673

21,384,810

21,584,563

Revenues Excess

359,156

95,384

724

Expenditures Excess

62,535

898,947

918,359

184,985

768,030

Sources:

1997-2005 Revenues and Expenditures from Page 179 of Comprehensive Annual Financial Report for year ended 06/30/05.

 

State of Indiana 1987-1997 Total Revenues Versus Total Expenditures Comparison

(includes governmental fund types of both the primary government and discretely presented component units)

(amounts expressed in thousands of dollars)

(compiled August 7, 2003)

Fiscal Year

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

Total Revenues

8,808,079

9,743,316

10,653,040

11,129,816

10,875,334

11,790,552

12,795,317

12,620,235

13,835,369

14,292,016

Total Expenditures

7,544,311

9,167,677

8,446,932

10,011,849

10,780,628

12,057,268

12,005,626

12,336,384

13,278,468

14,288,042

Revenues Excess

1,263,768

575,639

2,206,108

1,117,967

94,706

789,691

283,851

556,901

3,974

Expenditures Excess

266,716

Sources:

1987-88 Revenues and Expenditures from Page 189 of Comprehensive Annual Financial Report for the year ended 06/30/97.

1988-89 Revenues and Expenditures from Page 183 of Comprehensive Annual Financial Report for the year ended 06/30/98.

1989-90 Revenues and Expenditures from Page 187 of Comprehensive Annual Financial Report for the year ended 06/30/99.

1990-91 Revenues and Expenditures from Page 145 of Comprehensive Annual Financial Report for the year ended 06/30/00.

1991-92 Revenues and Expenditures from Page 145 of Comprehensive Annual Financial Report for the year ended 06/30/01.

1992-97 Revenues and Expenditures from Page 143 of Comprehensive Annual Financial Report for the year ended 06/30/02.

The following table identifies per capita expenditure changes for the five-year time period 1999-2004 and the ten-year time period 1994-2004. It is interesting to note that the 1994-2004 Total Expenditures Per Capita Increase was 2.32 times more than the inflation increase.


State of Indiana 1995-2005 Per Capita Expenditure Changes

All Expenditures

(expenditure amounts expressed in thousands of dollars)

(compiled January 23, 2006)

Five-Year
2000-05
Increase

Ten-Year
1995-05
Increase

Fiscal Year

1994-1995

1999-2000

2004-2005

Population

5,851,459

6,080,485

6,271,973

Consumer Price Index

152.5

172.4

194.5

12.82%

27.54%

Function

General Government

$2,733,011

$3,676,093

$4,047,535

Per Capita

$467

$605

$645

6.61%

38.12%

Inflation Comparison

0.52

1.38

Public Safety

$658,124

$989,994

$1,188,773

Per Capita

$112

$163

$190

16.56%

69.64%

Inflation Comparison

1.29

2.53

Health

$213,626

$298,042

$425,460

Per Capita

$37

$49

$68

38.78%

83.78%

Inflation Comparison

3.02

3.04

Welfare

$3,588,792

$5,147,995

$7,306,103

Per Capita

$613

$847

$1,165

37.54%

90.05%

Inflation Comparison

2.93

3.27

Conservation, Culture, Development

$313,069

$483,756

$520,332

Per Capita

$54

$80

$83

3.75%

53.70%

Inflation Comparison

0.29

1.95

Education

$3,807,840

$5,733,862

$6,505,924

Per Capita

$651

$943

$1,037

9.97%

59.29%

Inflation Comparison

0.78

2.15

Transportation

$899,994

$1,253,852

$1,556,624

Per Capita

$154

$206

$248

20.39%

61.04%

Inflation Comparison

1.59

2.22

All Other

$121,928

$234,843

$33,812

Total Expenditures

$12,336,384

$17,818,437

$21,584,563

Per Capita

$2,108

$2,930

$3,441

17.44%

63.24%

Inflation Comparison

1.36

2.30

Sources:

Population data from http://finplaneducation.net/population_data.htm 
Consumer Price Index data from http://finplaneducation.net/consumer_price_index.htm 
1994-95 Revenues and Expenditures from Page 167 of Comprehensive Annual Financial Report for the year ended 06/30/04
1999-00 and 2004-05 Revenues and Expenditures from Page 179 of Comprehensive Annual Financial Report for the year ended 06/30/05

Sample Computations:

1995-05 Consumer Price Index Increase = (194.5 - 152.5) (100) / (152.5) = (4200) / (152.5) = 27.54%

2004-05 Total Expenditures Per Capita = ($21,584,563,000) / (6,271,973) = $3,441

1995-05 Total Expenditures Per Capita Increase = ($3,441 - $2,108) (100) / ($2,108) = 63.24%

1995-05 Total Expenditures Inflation Comparison = (63.24%) / (27.54%) = 2.30

Watchdog Indiana Home Page Population Data Consumer Price Index State Long-Term Bonded Debt Data Selected State & Local Revenue Data State Cash Revenue Data State Cash Spending Data

This page was last updated on 03/19/10.