State officials say a projected shortfall in Iowa’s $7.2 billion budget has shrunk and will not require a special legislative session to fix.
The Iowa Department of Management Director David Roederer says the state budget that ended in June has about a $13 million shortfall.
That figure is much smaller than projections earlier this summer.
OC….by the auditor. :13
The announcement means Gov. Kim Reynolds will not have to call lawmakers back to the Capitol.
She has authority to transfer up to $50 million in emergency funds to plug a budget shortfall, so $13 million will be transferred to plug this deficit.
State Representative Chuck Holz of Le Mars says he relieved to learn a special session is not needed:
OC……..great news. :14
Holz says in January the state legislature will pay back the money borrowed from the reserves:
OC………730 million dollars. ;16
The nonpartisan Legislative Services Agency estimated earlier this summer a possible shortfall of about $100 million.
State officials say final adjustments on a range of incoming revenue shrunk the expected shortfall.