Home Local News IOWA WON’T NEED SPECIAL SESSION OVER BUDGET DEFICIT

IOWA WON’T NEED SPECIAL SESSION OVER BUDGET DEFICIT

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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.