Gov. Pence considers using surplus to pay off federal loan

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 Indiana Gov. Mike Pence is deciding whether to use about $250 million of the state’s surplus to provide relief to local businesses by paying off a federal unemployment loan this fall.

If the loan is paid off by Nov. 9, the state’s employers would save an estimated $327 million in penalties next year. The governor’s office and supporters of the plan say it would bring tax relief for job creators and ultimately help the state’s economy.

But a public finance expert and state Rep. Greg Porter, the Democratic fiscal leader in the Indiana House, believe the surplus generated by all taxpayers should be used in a way that would benefit residents.

Porter hopes Pence will consider allocating surplus money to roads and preschool education.