DES MOINES, Iowa – The December Revenue Estimating Conference (REC) projects that the state of Iowa’s projected net general fund revenue in FY21 will be $7,969,300,000, a slight increase from October’s projection and 0.5 percent more than FY20 actual revenue. The REC projected the net general fund revenue in FY22 to be $8,265,700,000, a 3.7 percent increase from FY20 and a $296.4 million increase over the current fiscal year (FY 2021) estimate.
State Rep. Gary Mohr, R-Bettendorf, Chairman of the House Appropriations Committee, was cautiously optimistic.
“While things currently look positive, we don’t fully know what sort of future impacts the pandemic will have on Iowans’ pocketbooks, our economy, and the state budget. With that kind of uncertainty, we must proceed with caution and resist the urge to spend every last dollar that the state collects,” he said in a released statement.
“Make no mistake, Iowa is in strong financial position which is largely due to the responsible budgeting practices that House Republicans have fought to implement over the last decade. That’s why the nonpartisan Council of State Governments has ranked Iowa as the #1 most prepared state in the country to withstand the financial challenges that COVID has presented us with,” Mohr said. “House Republicans will continue to conservatively and responsibly manage the state budget.”
Chris Hagenow, vice president of Iowans for Tax Relief and the former Iowa House Majority Leader, applauded the news.
“Today’s estimate shows the resiliency of Iowa’s Economy during the COVID-19 pandemic. While other states make dramatic budget cuts, the leadership of the Governor and legislature have put our state in an enviable fiscal position,” he said.
Hagenow called for the additional tax cuts passed in 2018 to take effect.
Much of the tax relief in the 2018 legislation was subject to revenue triggers requiring revenue growth of four percent that needs to be met before lower rates could be enacted in 2023. If the revenue target is met, the top rate will fall to 6.5 percent
“Strong economic growth coupled with spending discipline provides an excellent foundation for the legislature to move forward with additional tax relief. The Governor and legislature should confidently seize the opportunity to further boost Iowa’s economy and put money back in the pockets of Iowa taxpayers,” Hagenow said.