Governor plans revenue shortfall fix without special session
DES MOINES, Iowa (AP) — Gov. Kim Reynolds says she hopes to cover a state budget shortfall by pulling $50 million from the state’s economic emergency fund avoiding the need to call lawmakers back in a special session to make spending cuts.
Two weeks ago revenues remained $97 million behind projections. Reynolds says the shortfall has shrunk but it’s difficult to tell where it will be in September when the state closes its fiscal year books.
At her weekly news conference Tuesday she said she can transfer funds for a shortfall under $50 million.
Lawmakers cut $118 million from the budget in January then borrowed $131 million from cash reserves.
Reynolds blamed a slow farm economy and increased online purchases for which Iowans pay no sales tax.
House Democratic leader Mark Smith blamed Republican-led corporate tax cuts.