Farm slowdown pushes Iowa tax revenue $49.3 million lower
DES MOINES, Iowa (AP) — A panel of state budget experts has lowered Iowa revenue projections for the current fiscal year, though there are no immediate plans to cut spending.
Citing a slowdown in agricultural income and economic uncertainty from a divisive presidential race, interest rates and international trade the Revenue Estimating Conference Thursday predicted the state will take in about $49.3 million less than anticipated in March.
The new revenue estimate, based mostly on individual, business and sales tax receipts, is $7.31 billion for the fiscal year that began July 1. That’s still a 5.6 percent increase from the previous year.
The three-member group estimated next year’s revenue will grow 4.1 percent to $7.61 billion.
The group updates the estimates again in December and those figures are the basis for next year’s state budget.