Press Release Archive
Wednesday, July 1, 2009
Iowa Budget Director: Revenue Shortfall Manageable, Budget Will Balance
DES MOINES – The Iowa Department of Management announced today that, while the national economic recession has continued to impact state tax receipts, the revenue shortfall is manageable and it is anticipated the state budget will be balanced when the State closes its books at the end of September.
Total gross receipts for FY 2009 are $6.921 billion, which is only $57.7 million lower than the Revenue Estimating Conference’s official estimate of $6.979 billion.
Dick Oshlo, state budget director, said: “With yesterday marking the end of the fiscal year, we now know the state’s gross receipts for FY 2009. While the state’s tax receipts deteriorated more than expected during the last two months of the fiscal year due to the ongoing effects of the national economic recession, this is a manageable number. Fortunately, receipts improved during the final days of June. At this point we see no legitimate reason for a special session to balance the state’s budget.”
The gross receipts announced today are the first set of numbers used by the Department of Management to close the General Fund budget for the fiscal year. Between now and September the final numbers for expenditures and accrued revenues will be determined. The actual budget will not be closed until the end of September.
The State of Iowa has a projected ending balance of $44.7 million, and the Governor has the authority to transfer up to $50 million from Economic Emergency Fund in order to balance the State’s budget during an economic downturn.
NOTE: Attached is a memo with additional information on the FY2009 year-to-date General Fund receipts.