State Budgets: Iowa Cancels Some Spending to Address Shortfall
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.
Was this page helpful to you?
Thank You!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationShare This Article!
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback