Iowa State Treasurer Michael Fitzgerald is asking the governor to reconsider the idea of a short-term borrowing plan for state government. Fitzgerald says it makes sense to borrow now, in preparation for a couple of “problem months” in the first half of 2018 when the state may not have enough cash in reserve to pay its bills on time.
Fitzgerald says the state is waiting for Iowans to submit their income tax payments in March and April, while at the same time continuing to make school aid payments, send out tax refunds and cut paychecks for state workers.
Republican Governor Kim Reynolds rejected Fitzgerald’s initial call back for a short-term borrowing plan. Fitzgerald, who’s a Democrat, plans to send Reynolds a formal proposal this month, hoping for a different result by September.
