Des Moines, Iowa — A panel reviewing the state’s tax receipts has concluded there’s a very slow economic recovery ahead and the group is predicting state tax revenue in the current fiscal year will grow by just half-a-percent.
However, the Revenue Estimating Conference predicts state tax collections will expand by three-point-seven percent in the budgeting year that begins July 1st. Holly Lyons of the Legislative Services Agency is one of the three panel members.
(as said) “I think all of us will be glad to see the year 2020 behind us, but this year more than ever, it’s hard look ahead to the next year with any clarity.”
The current state fiscal year ends June 30th. The council’s tax collection prediction for the next fiscal year is nearly 300 million higher. Iowa Department of Management director Dave Roederer says the big question is whether wide distribution of COVID vaccine will stoke the economy.
(as sid) “Do we need economists or do we need psychiatrists to really help us determine what is going to happen?” Roederer asked.
Roederer says the economy won’t start growing until people believe the pandemic is coming to an end and they start spending their money on goods and services again. The Revenue Estimating Conference predicts the State of Iowa will collect eight-and-a-quarter billion dollars in the next budgeting year. That total is what the governor will use as the basis for the state spending plan she’ll present to legislators in January.
