DES MOINES, Iowa (AP) – State budget experts say revenue projections for the current fiscal year are running slightly ahead of their October predictions, but the growth for the 2020 budget is expected to be considerably slower.
The three-member Revenue Estimating Conference says state income is up about 4.7 percent from the previous year but the group anticipates only a 1.7 percent increase in revenue for next year.
The estimate for next year is important because the governor must base her 2020 budget on the estimate released yesterday(Thur). That means little money for increased education spending or pay increases.
Iowa Department of Management Director David Roederer says the economy is strong but factors including interest rate hikes and ongoing trade disputes affecting farm commodities could cut into tax revenue. He advised caution in budgeting for next year.
Republican legislative budget leaders say the state will have enough money to reflect priorities “in a responsible way.” Democrats say the budget is limping along because Republicans have given away
too much revenue in tax breaks.
Republicans control the governor’s office and both legislative chambers.