Indiana 2012 Financial Statement

The state of Indiana is a mid-western state governed by Mike Pence in 2016, and its financial statements were prepared by Auditor of State Suzanne Crouch and her team (1). Its 2016 Comprehensive Annual Financial Report communicates to readers that: Indiana’s post-retirement health care plan is underfunded and has a funding gap, its infrastructure is sufficiently maintained, its deficit is concerning, it has increase state-funded medical care, and its unemployment is decreasing. Ohio is an appropriate benchmark and comparison for Indiana’s financial performance.

1. The first insight readers gain by analyzing Indiana’s financial statements is that there is a financial gap between the funding for its other post-employment benefits, primarily its

The second insight gained from analyzing Indiana’s 2016 financial statements is that Indiana consistently maintains its infrastructure with minor exceptions. The first indicator of consistent maintenance is its condition ratings. Roads were primarily rated to be in good condition with ratings falling between the International Roughness Index of 80-114 which is far below Indiana’s acceptable maximum average of 101 IRI (175). One exception is non-NHS Roads increased to 105.4 in 2016 (175). Additionally, the roads’ ratings have an increasing trend over the past three years but are still below the 101 ceiling with the non-NHS exception. Analyzing Indiana’s planned to actual maintenance and preservation, readers can see that the gap between budgeted and spent has varied from 2012-2016. Periods where spending exceeded the budget, like 2012 and 2015, were followed by periods of greater underspending. This variability could explain the increased condition ratings and non-NHS road exception

The fourth observation from reviewing Indiana’s financial report is it is expanding state funded health care, primarily Medicaid. Medicaid has a staggering impact on Indiana’s financial statements. In 2016, “the largest portion of the State’s expenses is for Welfare which is $14.3 billion or 44.4% of total expenses” (14). Medicaid was the primary expense under welfare, totaling $10.6 billion in 2016 (14). In 2015, 44.8% of total expenses were welfare related (Indiana 2015 Comprehensive Annual Financial Report 14); however, Medicaid costs in 2016 were $9.2 billion resulting in a 15.2% cost increase. Consequently, “welfare expenditures increased $104.0 million which is attributed to increased state support required for the Medicaid program” (16). Last, Medicaid assistance exceeded its budget by $433,385,000 (173).

The increases in expenses and funding for Medicaid assistance indicates a more pressing issue: increased resident dependence on Medicaid. Medicaid is primarily for those with lower income and disabilities, and its increased enrollment of 14.2% in 2016 should raise concerns. One concern, in particular, is the possibly strain on healthcare facilities and professionals as 12.9% of Indiana’s workforce is employed by health care and social service jobs