Is it Raining in Iowa?
By Amy K. Frantz
The Revenue Estimating Conference (REC) that sets the amount the Legislature and Governor use in putting together the state’s budget has reduced the estimated rate that tax receipts will rise twice now in the past few months. Because the Legislature and Governor had decided to spend right up to the maximum allowed under the law, they were forced to adopt a de-appropriations package earlier this year, cutting $117.8 million from the budget. Following the REC’s meeting in March, the state was facing another round of spending cuts totaling $131 million. However, because there are only about three months left in the fiscal year (which ends on June 30), the Governor has proposed using “Rainy Day funds” to make up the difference.