Sept. 25, 2017DES MOINES, Iowa |
Iowa's finances uncertain
Iowa lawmakers will not return to the state Capitol for a special session, but Iowa's finances remain on shaky ground.
Staff for Gov. Kim Reynolds announced last week a projected shortfall for the roughly $7.2 billion budget that ended in June was drastically smaller than expected. Final accounting turned up more than $70 million in additional revenue. The Republican governor will borrow $13 million from emergency reserves to offset the shortfall.
Iowa has borrowed about $144 million from such reserves this year, and lawmakers plan to repay that money in the next two years. There are also unknown costs tied to the privatized Medicaid health care program for poor and disabled people. This will impact the current budget, though it's unclear by how much. It could lead to additional agency budget reductions, or complicate a Republican priority next year to cut taxes.