April 1, 2011

State Revenue Forecast Improves

Citing a growing state economy, a non-partisan budget panel this week raised state revenue estimates by $86 million, with $48.6 million falling in fiscal year 2011 and $38 million in fiscal year 2012.

Two members of the Revenue Estimating Conference (REC) were very bullish on the strength of Iowa’s economy, citing employment growth estimates at 1.4% for the current year and 1.7% for the next year. Iowa’s strong farm economy and agricultural manufacturing has help Iowa’s economy speed its way to recovery.

Iowa has sustained several months of growth and more workers are earning over-time income, which is also a sign of an improving economy. One member of the non-partisan budget panel was much more cautious in his remarks on the economy. Raising concerns with oil hitting $100 a barrel, unemployment rates still above historic levels, building permits low, and slow recovery.

The REC estimates that the State will collect $5.855 billion in net general fund receipts and transfers for fiscal year 2011, which represents a $222 million increase from FY 2010. The fiscal year 2012 net revenue is estimated to be $6.189 billion, an increase of $333.3 million over the new fiscal year 2011 revenue estimate.

Even with these new estimates, by law the Legislature will use the revenue estimates from the December meeting.

0% Allowable growth is not acceptable!

copied from IA Rep Vicki Lensing's update...note of 0% not acceptable, mine. Nancy

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