Iowa Governor Terry Branstad says the next state budget plan he’ll begin drafting soon must be “very frugal.” The current state budgeting year began July 1st and a panel of state financial experts has signaled state tax collections are 121-million dollars lower than expectations. Branstad says the lagging farm economy is the main reason….
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Branstad must base his budget plan for the next fiscal year on the estimate of state tax revenue that’s issued by a panel of experts in December. The governor expects the prediction will indicate tax revenue WILL be higher next year, but perhaps not grow as robustly as experts thought this past spring…
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Branstad and legislators have promised increased spending NEXT year on teacher mentoring programs as well as an increase in payments to local governments to replace reduced commercial property tax revenue. To keep those commitments, there may be reduced spending in other areas. In the current budgeting year, the State of Iowa is STILL expected to see a three-point-four percent increase in the amount of taxes Iowans pay.