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Home / Iowa Taps Savings to Balance BudgetIowa Taps Savings to Balance Budget
Last Updated on Thursday, 2 July 2009 12:04 Written by rslcpol Thursday, 2 July 2009 12:04
From the DesMoinesRegister:
Vastly different estimates were released Wednesday on how Iowa ended its fiscal year this week, but all projections indicate that Gov. Chet Culver will have to use cash reserves to balance the state budget.
Some political leaders say deep cuts to state services will be required, but others say the state has enough financial cushion to deal with the budget shortfall without cuts being needed.
The Legislature and Culver crafted a budget that assumed the state would have a positive balance of almost $45 million on June 30.
But Culver’s staff released information Wednesday that said the state would have $58 million less on hand at the end of the fiscal year than budgeted.