DES MOINES, Iowa – Gov. Kim Reynolds announced today that the State of Iowa will end Fiscal Year 2021 with a balance of $1,238.6 billion in its General Fund, the largest surplus the state has ever logged.
“Iowa is in a very strong financial position due to our fiscal responsibility,” Reynolds said. “This surplus proves we accomplished exactly what we set out to do—overcome the financial challenges caused by the global pandemic and invest in education, workforce, healthcare, agriculture and technology. We will continue to invest in these important priorities going forward to meet the needs of our citizens and state.”
FY 2021 closed on June 30th, but the accrual period officially ends on September 30th. During this time, Iowa closes the books and pays out and receives outstanding obligations. Last year’s budget surplus was $305 million.
“I commend the dedication of Governor Reynolds on recognizing the importance and need for a healthy and strong balanced budget for the state of Iowa,” said Joel Anderson, interim director of the Iowa Department of Management.
Republicans praised the news.
“Conservative budgeting has put our state in a strong position where we’re able to invest in priorities like broadband and workforce and cut taxes for hard-working Iowans, all while maintaining a healthy surplus,” Iowa Secretary of Agriculture Mike Naig tweeted. “This is exactly the type of common sense budget that Iowans expect.”
“Leadership matters,” Iowa House Speaker Pat Grassley, R-New Hartford, tweeted. “Because of the responsible, conservative budgeting principles implemented by @IAGovernor Kim Reynolds and leadership in the state legislature, Iowa’s economy remains strong! This doesn’t happen by accident.”
Newly-elected State Rep. Michael Bousselot, R-Ankeny, who recently led the Iowa Department of Management, said that prosperity is not guaranteed.
“Huge surplus! Prosperity is not guaranteed. @KimReynoldsIA & Iowa Legislsture put people first – keeping our economy moving & our state safe. As budget director, I worked on balanced budgets that spent on priority areas: jobs, education, & public safety,” he tweeted.
“Now, with cash reserves & economic emergency accounts full AND w/ billions of on-going taxpayer dollars in the Taxpayer First Fund, let’s ensure Iowa remains competitive & a place where Iowans who work hard, take risks, invest in our state & create jobs are not penalized!” he added.
“The consequences of Democrat leadership and Republican leadership could not be more clear. Democrats in control of the government in Washington, D.C. are implementing policies that have unleashed government spending and tax hikes,” Republican Party of Iowa Co-Chair Linda Upmeyer said. “Meanwhile, Iowa Republicans are providing the state of Iowa with stability and opportunity. Iowans see the difference in leadership and value the budgeting practices of Iowa Republicans.”