Indiana House Bill HJR0005

Indiana 2022 Regular Session

• Introduced: 1/6/22
• Refer: 1/6/22

Caption

Establishes the Indiana permanent fund (fund) in the state treasury. Provides that the fund consists of: (1) 50% or such other greater percentage established by law of any general fund budget surplus realized during a state fiscal year; (2) appropriations made to the fund; and (3) other sources designated by law. Requires income from the fund to be reinvested in the fund. Authorizes the payment of dividends from the income to eligible recipients. Provides that, to be eligible to receive a dividend payment from the fund, a person must have voted in the most recent general election in which the

Impact

The establishment of the Indiana Permanent Fund could have a significant impact on the state's financial management and budgeting practices. By reallocating a portion of the budget surplus into this permanent fund, the state aims to create a long-term financial resource that can offer dividends to citizens who have actively participated in the democratic process by voting in recent elections. The gradual increase in the percentage of income that can be paid out as dividends over the years is designed to benefit residents financially, emphasizing civic engagement and voting participation as prerequisites for receiving dividends.

Summary

House Joint Resolution No. 5 proposes an amendment to Article 10 of the Indiana Constitution to establish the Indiana Permanent Fund within the state treasury. This fund is designed to receive 50% of any general fund budget surplus realized during a state fiscal year, as well as other appropriations and designated sources as established by law. The resolution requires that income generated from the fund's investments is to be reinvested in the fund, but allows for annual dividend payments to eligible recipients based on the fund's income. This approach aims to ensure that the fund can grow sustainably over time while providing financial benefits to participating citizens.

Contention

Some points of contention may arise regarding the eligibility criteria for receiving dividends, which stipulates that individuals must have voted in the most recent general election to qualify. Critics may argue that linking financial benefits to voting participation could disenfranchise certain groups and create disparities in who receives dividends. Additionally, some lawmakers might challenge the financial implications of diverting substantial budget surpluses into a permanent fund, questioning whether this could limit flexibility in addressing immediate state needs and priorities. As this resolution requires ratification by a majority of the state's voters, public support and understanding of the fund's purpose will be crucial for its passage.