Gov. Kim Reynolds announced Wednesday that no special session is needed for Fiscal Year 2017.
The expected shortfall for Iowa’s FY 2017 budget is $14.6 million. Gov. Reynolds will combine $13 million from the state’s economic emergency fund with the $1.6 million ending balance. This is the final action on the FY 2017 budget, which ended June 30, 2017. The state has $605 million in reserve funds after closing the FY 2017 books.
“This has been a difficult budget year, but I am pleased we were able to manage lower-than-expected revenues without cuts to education or Medicaid,” Gov. Reynolds said. “We have been monitoring funds daily since the end of the fiscal year on June 30 and took a measured approach in dealing with the state’s finances. We continue to closely monitor the current fiscal year’s balance sheet and do not believe action is needed at this time.”
Department of Management Director Dave Roederer held a budget briefing for members of the media Wednesday morning. He shared more with reporters, including:
- The Revenue Estimating Committee (REC) estimated 2.7% growth in the FY 2017 budget. Actual growth was 2.5%.
- Accruals (tax payments due June 30, 2017, that came in after June 30, 2017) totaled $73 million.
- After stalling earlier this year, Iowa’s corporate income taxes came in stronger than expected at 5.6% vs. the REC estimate of 0%.
- Corporate taxes make up 6.5% of Iowa’s general fund.
- Projected FY 2017 revenue from the REC: $7.106 billion
- Actual FY 2017 revenue: $7.095 billion
- Projected FY 2017 net appropriations: $7.254 billion
- Actual FY 2017 net appropriations: $7.258 billion