Des Moines, Iowa (RI) — Governor Kim Reynolds says the updated prediction that state tax revenues will fall nine percent during the current state budget year is to be expected — due to the flat income tax that went into effect in January.
1.3The current year’s state budget now calls for spending $1.3 billion more than the state is predicted to get in revenue. Reynolds says she and GOP lawmakers intentionally kept spending low over the past few years and stored up more than enough cash to cover that gap.
State Auditor Rob Sand — a Democrat who’s running for governor — says that the latest report from the state panel that predicts state tax revenue has confirmed the state budget is being run into the ground and the state surplus will only last for a short time. The Revenue Estimating Conference predicted in March that tax revenue would decline by five percent during the current budgeting year, but lowered their estimated dip to nine percent yesterday (Thursday).
KIWA Staff Photo
