INDIANAPOLIS — State officials say Indiana closed out the 2017 fiscal year that ended in June with about $1.8 billion in reserves and a surplus of $42 million.

Indiana Auditor Tera Klutz said Tuesday during a news conference at the Indiana Statehouse that the numbers demonstrate that the state is fiscally responsible.

Republican Gov. Eric Holcomb and the GOP-controlled Legislature raised taxes on fuel this last legislative session despite the balance in reserve.

Office of Management and Budget Director Micah Vincent says that’s a prudent step because it will allow the state to pay for infrastructure improvements while keeping the state ready for a possible economic downturn.

That way the state is prepared to weather a sinking economy without needing to immediately raise taxes while still providing services.