Sec. 3. (a) Each year, the budget director shall determine the adjusted personal income and the annual growth rate for Indiana using the current reporting period.

(b) The budget director shall determine the adjusted personal income for the current reporting period in the following manner:

STEP ONE: Calculate the average implicit price deflator for the gross domestic product for the current reporting period by totaling the implicit price deflator for the gross domestic product for each quarter of the current reporting period and dividing that total by four (4).

STEP TWO: Calculate the remainder of the total state personal income for the current reporting period minus any transfer payments made in Indiana for the current reporting period.

STEP THREE: Calculate the quotient of the result of STEP TWO divided by the result of STEP ONE.

STEP FOUR: Calculate the product of one hundred (100) multiplied by the result of STEP THREE. This product is the adjusted personal income for the current reporting period.

(c) The annual growth rate for a particular reporting period equals the quotient of:

(1) the remainder of:

(A) the adjusted personal income for the particular reporting period; minus

(B) the adjusted personal income for the twelve (12) month period immediately preceding the current reporting period; divided by

(2) the adjusted personal income for the twelve (12) month period immediately preceding the current reporting period.

The annual growth rate shall be expressed as a percentage and shall be rounded to the nearest one-tenth of one percent (0.1%).

(d) If the bureau changes the base year on which it calculates the implicit price deflator for the gross domestic product, the budget director shall adjust the implicit price deflator for the gross domestic product used in making the calculation in subsection (b) to compensate for that change in the base year.

As added by Acts 1982, P.L.22, SEC.1. Amended by P.L.205-2013, SEC.57.