Iowa treasurer: Budget transfer move not legally compliant
DES MOINES, Iowa (AP) — Iowa’s treasurer says Gov. Kim Reynolds’ plan to tap an emergency fund to address a budget shortfall is not compliant with state law.
Treasurer Michael Fitzgerald sent a letter to Reynolds on Friday that says revenue tied to the state budget that ended in June did not drop below a certain legal threshold. Since revenue didn’t meet that threshold, Fitzgerald says funds can’t legally be transferred from the state’s economic emergency fund.
Reynolds announced recently that a shortfall to last year’s $7.2 billion budget wouldn’t trigger a special legislative session. She said she would instead transfer $13 million from the fund.
Multiple messages left with the Republican governor were not immediately returned Friday.
Fitzgerald says he wants Reynolds to carefully review the budget numbers before she formally taps the fund.