Iowa began a new fiscal year on July 1st and while it appears the budget is balanced, some uncertainty remains. Iowans won't know until the end of September when the books are finally closed for fiscal year 2018, if there will need to be yet another transfer or more borrowing as Republican lawmakers have continued to mismanage the state’s finances.
Even if the budget is indeed balanced when the books are closed, current budget management has led to unsustainable practices. Republican lawmakers have already scooped from multiple funds for the upcoming budget year (FY 2019), including a fund to protect taxpayers and another for the creation of skilled workforce jobs. This was done in order to balance the budget, all while giving tax cuts to the richest Iowans.
Last year, majority party lawmakers and the Governor were forced to borrow $144 million and make a several budget cuts in the middle of the year because of their fiscal mismanagement.