Iowa facing more budget woes?
DES MOINES Gov. Terry Branstad and legislative budget-makers may have to confront options this week for balancing the states fiscal 2017 ledger that could include dipping into reserves as a temporary stopgap if projected growth in tax collections is downgraded again.
The state Revenue Estimating Conference which already has lowered this fiscal years tax receipt estimates in October and again in December is slated to convene Tuesday to decide whether its 4.7 percent growth projection for total net state tax receipts through June 30 is too optimistic.
The governor and GOP-controlled Legislature already made $117.8 million in midyear spending adjustments earlier this session that included $88.2 million in targeted cuts and $25 million in fund transfers to keep a positive ending balance of $600,000 projected through the June 30, the end of the current fiscal year.
The adjustments were precipitated by lackluster revenue growth blamed on a sagging farm economy that threw out of balance the $7.2 billion spending plan put in place by the 2016 Legislature and Branstad.
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