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Where does the money go in Indiana's state budget?

The southern exterior of the Indiana Statehouse.
Brandon Smith
/
IPB News
Indiana's 2023-2025 state budget includes more than $44 billion worth of spending, with more than 850 line items.

The vast majority of state budget funding comes from taxes, whether state or federal. But where, exactly, does it then go? That’s a question our listeners have been asking.

There are more than 850 line items in the state budget, individual spending amounts that make up more than $44 billion in total budget spending.

The largest is tuition support, the primary source of K-12 school funding. It’s nearly $18 billion, about 40 percent of total budget spending.

Other big line items include Medicaid funding, dollars for the Department of Child Services and big pots of money for the Indiana Economic Development Corporation.

There are also a few dozen line items that are less than $100,000 a year. That includes everything from investigating real estate appraisers to youth tobacco prevention to constructing and maintaining snowmobile trails.

READ MORE: Where does Indiana state budget funding come from?

Join the conversation and sign up for the Indiana Two-Way. Text "Indiana" to 73224. Your comments and questions in response to our weekly text help us find the answers you need on statewide issues.

Lawmakers have a lot of flexibility to decide how they use tax money toward all those line items. But there are some tax dollars that don’t have such flexibility. Indiana Fiscal Policy Institute President Stephanie Wells said those are known as dedicated funds.

“A really good example would be transportation funding,” Wells said. “Our roads and streets and those kinds of infrastructure investments have dedicated funds that are paid for out of gas taxes and other fuel taxes.”

About 13 percent of the state budget is dedicated funds.

This story is a part of Civically, Indiana — a project to answer both the how and why of Indiana’s state government. To take part in the conversation or find stories like this, join our text group The Indiana Two-Way by texting the word "Indiana" to 73224.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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Brandon Smith has covered the Statehouse for Indiana Public Broadcasting for more than a decade, spanning three governors and a dozen legislative sessions. He's also the host of Indiana Week in Review, a weekly political and policy discussion program seen and heard across the state. He previously worked at KBIA in Columbia, Missouri and WSPY in Plano, Illinois. His first job in radio was in another state capitol - Jefferson City, Missouri - as a reporter for three stations around the Show-Me State.