(INDIANAPOLIS) - Indiana finished the 2026 fiscal year with $3.99 billion spread across its surplus and major reserve accounts, including a $1.86 billion year-end surplus, State Comptroller Elise Nieshalla announced.
The total was 60% higher than the previous year. The surplus alone increased by 174%.
The year-end balance includes:
- $1.86 billion in surplus funds
- $1.14 billion in the Rainy Day Fund
- $719.7 million in the Tuition Reserve
- $274.8 million in the Medicaid Reserve
Those statutory reserves equal 17.6% of state-funded spending, enough to cover about 63 days of expenses.
Nieshalla and other state budget officials attributed the larger balance to spending controls and economic growth. Indiana's economy grew by 2.2%, slightly faster than the national rate of 2%.
The closeout figures do not show how much of the increase came from higher revenue, reduced spending or other factors.
Indiana also received $2 billion less in federal money during the fiscal year, a 10% decline from the previous year.
Federal funding pays for 42% of the state budget, but those federally supported expenses are not included when Indiana calculates the size of its reserves as a percentage of spending.
State Budget Director Chad Ranney said agencies will continue reviewing operations and looking for spending reductions as work begins on the next two-year state budget.
The figures were released by Nieshalla, the Office of Management and Budget and the State Budget Agency. A more detailed annual financial report will be prepared and independently audited by the State Board of Accounts.