Hunter
10/21/24
The Iowa Revenue Estimating Conference has issued their new budget projections, and predicts a decrease in available funds over the next two years.
The Legislative Services Agency expects $9.1 billion dollars in revenue for the current fiscal year, a 5.1% drop from fiscal 2024.
However, that’s still more than enough to cover state spending this year.
Kraig Paulsen, director of the Iowa Department of Management, said available revenue to spend this year is significantly above what will be spent and sees no budget crisis in the current fiscal year.
Tax cuts implemented by the state legislature drops the rate to a flat 3.8% starting next year. The Legislative Services agency predicts fiscal year 2026 revenues will drop below what Iowa is spending this year. That would leave legislators with the option of either spending less or dipping into state reserves.
A Waterloo Democrat, State Representative Timi Brown-Powers said Governor Reynolds’ tax breaks for corporations and the wealthy, combined with education vouchers have created an unsustainable budget while costs keep rising for Iowa families.