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.