State Budgets: Iowa Cancels Some Spending to Address Shortfall December 31, 2008 Joseph Bishop-Henchman Joseph Bishop-Henchman In December, Gov. Chet Culver (D) outlined $75 million in spending cuts to cover a $38 million drop in expected revenue and unexpected spending on disaster relief (a total $100 million shortfall in the $6.05 billion budget). The largest items are the cancellation of a $37 million office building for state employees and a hiring freeze and overtime reduction that saves $12 million. Lawmakers will soon begin crafting the 2010 budget, which the State Auditor estimates has a $600 million shortfall, assuming only legislated spending increases. Iowa has a $620 million reserve fund. More on Iowa here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Iowa Tags State Tax and Spending Policy