The state’s 2008 fiscal year concluded on June 30 and fiscal year 2009 began on July 1. Preliminary reports from the non-partisan Legislative Fiscal Bureau on state general fund receipts indicate that revenue collections exceeded expectations.

Fiscal Year 2008 ended with 9.4% revenue growth. This rate of collections compares with the Revenue Estimating Conference (REC) estimate of 8.8%. This higher rate of collections is a positive sign of the strength of Iowa’s economy, despite a slowing national economy.

The REC estimated that fiscal year 2008 general fund receipts would grow by $540.2 million, from $6.138 billion to $6.678 billion. The 9.4% growth rate helped to push the growth in receipts to $580.1 million, $39.9 million more than estimated.

Even though the fiscal year ended on June 30, there are financial transactions that may occur after that date, which are attributable to fiscal year 2008. These transactions may change the final ending balance of the budget. The state has two months to close the state’s books (until the end of August), with a detailed record of the accounts to the Legislature by October 1.