Despite falling revenues, Indiana’s financial position remains strong, supported by political leaders who are committed to plugging a fiscal shortfall and returning the budget to a state of structural balance, Standard & Poor’s said in a recent review of the state.
The triple-A rated credit is also strengthened by a diverse economic base, strong budget reserves, active budget management, and low debt levels.
Gov. Mitch Daniels three times this has year ordered a round of across-the-board budget cuts to keep pace with falling revenue numbers.
“Despite the continued adverse impact on revenues due to the downturn in the economy, we expect the state to make adjustments as necessary to restore budgetary balance,” said Standard & Poor’s analyst Steffanie Dyer.
Indiana does not issue general obligation debt.