Another tweak has been made to official state tax predictions in Iowa, and it likely means cuts will have to be made in the current state budget.
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That’s Iowa Department of Management director Dave Roederer. He’s the governor’s top advisor on budget matters. Roederer is also one of the three members of the Revenue Estimating Conference. The panel met this week, and reduced its official prediction of state tax collections in the current budgeting year. If that prediction holds through December, it means at least 35 million dollars would have to be cut from the state budget.
David Underwood, a retired business executive from Mason City, also serves on the Revenue Estimating Conference, and says while it appears farmers are having a good harvest, he’s not sure that will yield a major turn-around in farm income.
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The governor’s budget director says a long-standing hiring freeze is in effect in state government and agency directors understand they must pinch pennies. Democrats say the state faces “big challenges” because Republican Governor Reynolds and G-O-P lawmakers have made poor budget decisions.