Panel: Projections for Iowa’s budget are down again
DES MOINES, Iowa (AP) — Officials say projections for Iowa’s budget are down again, and could force spending cuts when lawmakers return in January.
A three-person panel concluded Thursday that the $7.2 billion budget in effect since July is down by about $130 million. The panel says Iowa’s economy is growing more slowly than expected.
Iowa Department of Management Director David Roederer says it’s too early to know the impact on the current budget but midyear reductions may be necessary.
The news comes months after the GOP-controlled Legislature cut agency budgets and borrowed money to offset reduced projections released earlier this year and last.
Democrats and Republicans blamed each other for poor budget priorities. GOP Gov. Kim Reynolds is seeking bipartisan support for tax cuts and skilled jobs training.
The revenue panel meets again in December.