DES MOINES – Iowa faces a $131 million budget crunch according to the latest state revenue projects, and Governor Terry Branstad and Lt. Gov. Kim Reynolds say reserves can cover the shortfall.
After the budget shortfall was announced last week, Gov. Terry Branstad and Lt. Gov. Kim Reynolds’ Communications Director Ben Hammes issued the following statement in regards to the March Revenue Estimating Conference:
“Our Iowa economy is growing. But the challenging farm economy, with commodity prices below the cost of production for far too long, has hit our state revenues. Iowa is prepared. The State of Iowa has hundreds of millions in the cash reserve account – the state’s savings account. Gov. Branstad and Lt. Gov. Reynolds propose using our savings in the cash reserves, rather than additional budget cuts, to meet our current fiscal year needs. The State has already made cuts to the current fiscal year budgets but with just over three months remaining in the current fiscal year, additional cuts are not feasible. The Governor and Lt. Governor are committed to reimbursing the cash reserve account in the budgets to be passed this legislative session.”
Americans for Prosperity-Iowa’s state director Drew Klein issued the following statement in light of the revenue shortfall:
“The report released by the Iowa Revenue Estimating Conference demonstrates the serious need for tax reform in Iowa. Years of bad tax policy have created an unstable state economy and left us with big budget problems.”
“Legislators should seek a long term solutions by rethinking the way our state does economic development and by enacting budget reform that will prevent these problems in the first place. Providing Iowa’s businesses and families with the tax relief they need is the best path forward for Iowa’s economy.”
Iowa Democrats also say that corporate giveaways are hurting the state’s budget and a tax reform is needed.
Start taxing the big corporate hog and chicken growers! They should be considered “businesses” and pay the same taxes as business owners do!
It’s interesting that a conservative criticizes the governor. “Years of bad tax policy have created an unstable state economy and left us with big budget problems.” Considering that Branstad has been governor for over 50% of the time in the last 30 years.
Also interesting…The only time in the last 35 years Iowa has experienced meaningful economic growth, seen significant economic diversification, and a increase in population was the 12 years he was out of office.
Also interesting that the only time the budget has been in limits with no over spending is when he was in office. Also interesting that the only time taxes have been lowered is when he has been in office.
Not true on either on count. And I’m literally LOL-ing in regards to your proclamation that taxes have somehow been lowered. I’m paying significantly more in property taxes since this dullard came back into office and our tax bill at the gas pump has gone up quite a bit too.
No mention of the commercial property tax break this dullard and his administration gave to our states corporations?!?!?! Those lost dollars would go a long ways towards funding our schools.
Iowa farmers took in over 5 BILLION dollars in farm subsidies last year – their not hurting – the small business owners are the ones hurting – a good democrat would propose more regulations that only benefit large corporations or businesses.
That old 5 BILLION dollar public servant retirement fund SHORTFALL/ unfunded is showing its ugly face again – MORE MONEY for the pubic servants – screw the private sector.