2. Senate Budget Priorities
• Honestly Balanced Budget
• Promote Hoosier Job Growth
• Fund Our Priorities
• Prepare For Indiana’s Future

3. U.S. Credit Ratings
As of March 4, 2013
Vermont
Washington AA+/Aaa/AAA
AA+/Aa1/AA+
Maine
Montana North Dakota AA/Aa2
AA/Aa1/AA+ (AA+/Aa1/NR) /AA
Oregon Minnesota
AA+/Aa1/AA+ AA+/
Aa1/ West Virginia NH AA/Aa1/AA+
Idaho Wisconsin New York
(AA+/Aa1/AA) South Dakota AA+ AA/Aa2/AA Michiga AA/Aa1/AA+ AA/Aa2/ MA AA+/Aa1/AA+
Wyoming (AA+/NR/AA) n
(AAA/NR/NR) AA
AA-
/Aa2/AA- Pennsylvani RI AA/Aa2/AA
Iowa a CT AA/Aa3/AA
Nevada Nebraska (AAA/Aaa/AAA)
AA/Aa2/AA++ Ohio AA/Aa2/AA+ NJ AA-/Aa3/AA-
(AAA/NR/NR) Illinois Indiana
Utah A-/ (AAA/ AA+/Aa1/ DE AAA/Aaa/AAA
AAA/Aaa/AAA Colorado Aaa/ AA+
A2/ MD * AAA/Aaa/AAA
(AA/Aa1/NR) A AAA)
Kansas Missouri* Kentucky DC A+/Aa2/AA-
California (AA+/Aa1/AA) AAA/Aaa/AAA (AA-/Aa2/A+
A/A1/A- Virginia*
AAA/Aaa/AAA
Arizona Tennessee
(AA-/Aa3/NR) New Mexico Oklahoma AA+/Aaa/AAA
AA+/Aa2/AA+ Arkansas North Carolina
AA+/Aaa/NR AA/Aa1/NR AAA/Aaa/AAA
Alabama Georgia
AA/ AAA/ South Carolina
Aa1/ Aaa/ AA+/Aaa/AAA
Louisiana AA+ AAA
Texas AA/
AA+/Aaa/AAA Aa2/
Alaska AA
AAA/Aaa/
AAA Puerto Rico
Mississippi Baa3/BBB/BBB+
AA/Aa2/AA
+
Florida
Hawaii AAA/Aa1/AAA
AA/Aa2/AA AAA
AA+
AA ( ) indicates states with no G.O. debt.
Ratings Source: S&P / Moody’s / Fitch Ratings are hypothetical.
AA-
* Maryland, Virginia, and Missouri on negative watch
A+ or lower

4. Appropriation-Backed Debt
Appropriation-Backed Debt
Debt Outstanding
Issuing Entity
(As of 12/31/12)
Transportation Finance Authority $1,215,646,298
Public University (Fee-Replaced) $1,192,991,057
State Office Building Commission $489,727,558
Indiana Bond Bank (Moral Obligation) 2 $449,910,000
Recreational Development Commission $27,190,000
Total $3,375,464,913
Appropriation-Backed Debt - Revenue Supported
Debt Outstanding
Issuing Entity
(As of 12/31/12)
IFA-Stadium & Convention Center 1 $977,065,000
Indiana State Fair 1 $62,165,000
Total $1,039,230,000
1 Debt Service anticipated to be paid fully by revenue sources but also are backed by appropriations
2 Moral obligation to replenish reserve accounts if used for debt service.

5. NOTE: Figures do not include transfers from Automatic Taxpayer Refund

6. Affordable Care Act by the Numbers
Percentage of
Number of Hoosiers Federal State Total
Year Hoosier
on Medicaid Cost Cost Cost
Population
2012 1 Million 16% $4.3 Billion $2.2 Billion $6.5 Billion
1.2 Million
2015 (no expansion of 19% $6.4 Billion $3.3 Billion $9.7 Billion
eligibility)
1.8 Million
? (expand eligibility to 28% ? ? $13.5 Billion
138% of poverty)
Source: Milliman “Affordable Care Act (ACA) – Medicaid Financial Impact Analysis Update” Sept. 2012
Note: As a comparison, the cost of the K-12 formula is
approximately $6.5 Billion per year.

7. Honestly Balanced Budget
• $29.5 Billion Two-Year Budget
• Ongoing Revenues Exceed Ongoing
Expenditures
• Ends Biennium with $2.5 Billion in
Reserves
 Includes $400 million for
transportation needs and $600
million for potential health care
needs over the biennium

8. Promote Hoosier Job Growth
• Cuts individual income tax rate from 3.4% to 3.3%,
effective Jan. 1, 2015 ($150 million per year)
• Eliminates state inheritance tax, retroactively effective
to Jan. 1, 2013 ($150 million per year)
• Cuts financial institutions tax rate from 8.5% to 6.5%,
phased in over four years, starting in 2014 (Contained
in SB 552; $19 million per year)
• Includes funding for vocational education and
workforce development initiatives contained in SB 465
(Indiana Works Councils - $6M over the biennium) and
HB 1002 (Indiana Career Council - $750,000 over the
biennium)

9. Funding Our Priorities:
K-12 Education
• Increases K-12 funding by $331 million over the
biennium.
 2% increase in FY 2014 and 1% increase in
FY 2015
• Provides performance funding opportunity for
every public school.
• $10 million per year for school resource officers
(SB 1)
• Funds Principal Leadership Academy (SB 402)

10. Funding Our Priorities:
Higher Education
• Increases operating funds by $99 million over the
biennium
 Operating dollars include $61 million in
performance funding for institutions (same as
current level).
• Authorizes $383 million in university capital projects
• Financial Aid:
• Increases student aid by $43 million in FY 2014 and
$28 million in FY 2015
• Provides $230 million for 21st Century Scholars over the
biennium

11. Funding Our Priorities:
Roads & Infrastructure
• Provides additional $112 million to INDOT and $101 million
to local roads to match local commitment
 Reallocates 1% of the sales & use tax distribution to the
Motor Vehicle Highway Fund
 Phases in a replacement of the Motor Vehicle Highway
Fund appropriation for the State Police and BMV with
state general fund dollars over two years
• Invests $200 million per year for two years into the Major
Moves 2020 Trust Fund for major highway expansion
projects.

12. Funding Our Priorities:
Roads & Infrastructure
Currently Funded Major Potential Transportation
Capital Projects Corridor Opportunities
• Milton-Madison Bridge ($52M) • Widen I-70 from 4 lanes to 6 lanes,
Illinois to Ohio ($1.35B)
• US 31 Kokomo ($155M)
• Widen I-65 from 4 lanes to 6 lanes,
• SR 25 Hoosier Heartland ($327M) Kentucky to I-80/94 ($1.97B)
• US 31 Plymouth to South Bend • Indiana Commerce Connector
($223M) ($1.52B)
• US 31 Hamilton County ($346M) • I-69 Bloomington to Martinsville
($306M)
• I-69 Crane to Bloomington ($400M)

13. Funding Our Priorities:
Child Protection
• Increases funding for DCS by $30 million per year
to provide:
• Additional case managers and supervisors
• Improved services for children with severe
mental and behavioral health needs
• Improvements to child abuse hotline
• $10 million per year for school resource officers
(SB 1)

14. Prepare for Indiana’s Future:
Health Care
• Fully funds the Medicaid forecast
• Creates the HIP Savings Account, consisting of:
• HIP fund balance (more than $200 million)
• Any 2013 Medicaid appropriation reversions
(approx. $234 million)
• HIP annual cigarette tax revenues beginning Jan. 1, 2014
($120 million per year)
• Includes provisions that let the governor negotiate with federal
government to receive block grant for any Medicaid expansion.
(SB 551)
• Requires General Assembly approval to release funding for any
negotiated health care plan.

15. Prepare for Indiana’s Future:
Paying Taxpayer-Funded Debt
• 100% of excess surplus (approx. $97 million) in
FY 2013 goes to Pension Stabilization Fund
• Repays $50 million Public Deposit Insurance
Fund loan (SB 552)
• Pays back charter school loan ($80 million)
• Provides $200 million cash funding for university
capital projects