Iowa Governor Kim Reynolds says the state does not need to engage in cash flow borrowing to cover the state’s financial obligations next March and April.
*
State Treasurer Michael Fitzgerald has been arguing the state should borrow a lump sum in September, then it can be invested and earn interest until this spring. That’s when the state enters a lean period, waiting for Iowans to pay their income taxes while still making massive monthly school aid payments and meeting state payroll. Fitzgerald says the state “nearly drained” its cash reserves this past spring during that period.
Reynolds says the accountants are still reviewing the books, waiting for state agencies to turn over any unspent funds and for bills owed to the state BEFORE June 30th to be paid.
*
Cedar Rapids Mayor Ron Corbett is running against Reynolds in the 2018 Republican gubernatorial primary. He’s been criticizing Reynolds for the way she and former Governor Terry Branstad have been using the state’s cash reserves this year to cover on-going state expenses rather than make deeper cuts in the budget.
