‘Budget’ Archives

Iowa’s Revenue Up Another $300 Million

The Revenue Estimating Conference (REC) met today with a  projected increase of $297.7 million in revenue for the budget in the current fiscal year. Because of revenue estimates based upon improvements to both the national and state economies the REC voted to increase its projected revenues.

The REC also included that Iowa’s current fiscal year is balanced and the year that ended June 30 had more than $700 in surpluses and reserve accounts, due in part to the budget saving initiatives the Legislature took during the 2010 session specifically including  the government reorganization overhaul.  The REC set the estimate for FY 2012 at 3.3%, which is $188.3 million above the new FY 2011 revenue estimate.

Joint Statement from House Speaker Pat Murphy & House Majority Leader Kevin McCarthy:

“With three quarters of a billion dollar surplus, today’s non-partisan budget estimate is great news for Iowa.  While the national recession still lingers across the country, Iowa’s economy has begun a strong recovery. We made tough choices last year to keep the state budget balanced without raising taxes and focused on small businesses and renewable energy to help grow a stronger economy.  It’s clear our efforts are having an impact.

We know many families are still struggling today and that’s why we’ll keep focused on creating good-paying jobs and growing our economy.”

Iowa Revenue Estimating Conference  is a three-member group that meets quarterly and  sets the amounts the governor and legislators must use for creating their budgets.  The Revenue Estimating Conference will meet again in December and the Governor and the Legislature must use that number in crafting the FY 2012 budget during the 2011 Legislative Session.

Tags: Fiscal Year 2010, Iowa Revenues, REC, Revenue Estimating Conference
Category 2011 Session Information, Budget, Featured, Recent News |

State Ends Fiscal Year With Surplus of $335.6 Million

The state officially closed the books for the 2010 fiscal year on Thursday, with a higher than expected surplus of $335.6 million and an additional $419 million in the state’s savings accounts. The Iowa Democrats responsibly balanced the state budget without raising taxes while laying the groundwork for Iowa’s economic recovery, while keeping the state’s savings accounts full.

State officials and the Legislature had anticipated a $100 million surplus but the improving economy and fiscal discipline of legislators led to an additional $234.9 million surplus when the year ended. This surplus is the second highest surplus in the state general fund in the last ten years. The highest was in fiscal year 2006, when the year ended with $361.9 million in surplus, according to the Department of Management.

Under Iowa’s budgeting laws, the state can only spend 99% of projected revenues with the surplus flowing into the state’s savings accounts. The state’s savings accounts, which are limited to 10% of general fund revenues, were created to help the state weather economic recessions, emergencies and disasters.  The two savings accounts, which are the Cash Reserve Fund and the Economic Emergency Fund, will now have a combined balance of about 8%, just short of the 10% limit.

When the 2011 session begins in January, legislators will begin work on the fiscal year 2012 budget.

Category Budget, Featured, Recent News |

Efficiency Efforts Save Taxpayers $300 Million

A newly released report says actions taken by the Legislature to make state government more efficient will save Iowa taxpayers $300 million over the next two years. The savings, which are $30 million more than originally anticipated, come from a package of government reorganization bills approved during the 2010 legislative session.
State Employee Early Retirement Incentive Program
Under Senate File 2062, the State Employee Retirement Incentive Program (SERIP), state em-ployees 55 years of age or older were eligible for early retirement. The program had projected savings of $57 million.
The program proved to be more popular than anticipated, and more employees took early re-tirement than were projected. Because of this, savings amounted to $88.6 million, significantly more than was originally projected.
Government Reorganization
Senate File 2088, the state government reorganization bill, will save taxpayers $126 million. This bill was a result of work from a Legislative interim committee charged with finding efficiencies in state government that would deliver services to Iowans in a more efficient and cost-effective man-ner.
The bill contained over 50 different ideas, both large and small. It eliminated 14 different boards and commissions, reduced energy costs, combined state purchasing, cut down on middle management to keep front line workers in their jobs, and consolidated information technology. The bill also requires that a committee be appointed every two years to review state government opera-tions and programs, and bring recommendations to the General Assembly.
Executive Order 20
Governor Culver’s Executive Order 20 directed the Departments of Management and Adminis-trative Services to begin implementing cost saving measures including consolidation of information technology and operations, and the consolidation of administration functions. This order is expected to save Iowa taxpayers an additional $84 million.

Category Budget |

Fiscal Year Ends with Economy Improving

The state ended the year with an over $300 million surplus, according to the non-partisan Legislative Services Agency (LSA). The surplus was over $200 million higher than projected and means the state ended the fiscal year on June 30 in solid financial shape.

The LSA report was released today after the state 2010 fiscal year ended on June 30. The report shows the budget was not only balanced, but will also increase the amount of money in the state’s savings account. Combined with current projections, the surplus means the state’s savings accounts will be nearly full again at the end of next year.

Tags: Budget, fiscal year
Category Budget |

Iowa Receives AAA Bond Rating Once Again

According to Moody’s and Fitch, two national bond rating agencies, Iowa has been upgraded to AAA status, a level already given to Iowa by Standard and Poor’s in 2008.

AAA bond ratings mean Iowa is able to access more affordable funds for vital infrastructure projects critical to generating job growth and opportunity. Iowa is one of only eight states nationwide receiving such a rating from Moody’s.

Category Budget, Jobs & Economy |