Iowa Public Radio: State tax revenue prediction lowered, state budget cuts likely
Another tweak has been made to official state tax predictions and it likely means cuts will have to be made in the current state budget.
If that prediction holds through December, it means at least $35 million would have to be cut from the state budget. Governor Reynolds will review all the information and “likely” make a recommendation to legislators in January, according to Roederer.
We have a problem in Iowa; and depending on who you talk to, it's either a spending problem or a tax problem. I content it is both. But in a growing economy (and a state law which doesn't allow spending more than the state takes in), we should not be forced in two straight years to make reductions in approved budgets.