Governor Terry Branstad has formally presented legislators with his plan to ensure the current year’s state budget does not slip into a deficit. A three-member panel of experts threw the current year’s spending plan into disarray by reducing the “official” estimate of state tax revenue by 131 million dollars. Branstad, as expected, says it’s time to dip into the state’s cash reserve to cover THAT expected shortfall.

 

Republican legislative leaders have indicated they’re also willing to use the state’s cash reserve fund to keep the state budget in the black. The budget documents Branstad’s staff released also show the governor has pared more than 173 million dollars from his initial budget plan for the NEXT state fiscal year that begins July 1st.  There’s nearly 15 million dollars of unspecified trimming throughout the executive branch of state government. Branstad has reduced his initial budget plans for the three state universities by 12 million dollars.