State officials in Iowa are nervously reviewing the data on state tax collections.
The state tax revenue that’s been collected through the past 11 months is about 100 million dollars BELOW expectations. Jeff Robinson is a senior fiscal analyst with the Legislative Services Agency.
The state’s current budgeting year ends June 30th. Unless there’s a remarkable turnaround in state tax collections during the next four weeks, Governor Kim Reynolds may have to take extraordinary action to ensure the state budget ends the year in the black. Governors do have the authority to withdraw up to 50 million dollars from the state’s cash reserve to cover any deficit.
Robinson says INCOME tax payments to the state have grown modestly in the past 11 months compared to the previous year, but state SALES tax payments have increased less than half-a-percent.
