State officials say Indiana will close out the fiscal year with a $42 million surplus and $1.8 billion in reserves.
State Auditor Tera Klutz and Micah Vincent of the Office of Management and Budget made the announcement.
Both Klutz and Vincent say the surplus and reserves allow Indiana to keep its strong credit rating and prepare for down times in the economy.
Despite the good fiscal news, state officials acknowledge a need for financial flexibility in the wake of uncertainty over health care reform and the impact on the state’s Medicaid coffers.
You can hear Klutz and Vincent in the Leon-Tailored Audio above.