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Home / Iowa: Budget Fears Prompt Calls for ReformIowa: Budget Fears Prompt Calls for Reform
Last Updated on Tuesday, 26 May 2009 12:14 Written by rslcpol Tuesday, 26 May 2009 12:14
From DesMoinesRegister:
Lawmakers last month set up an interim committee that will look at reorganization. Such reviews have occurred in previous years, but the process will likely be taken more seriously in the 2010 legislative session, said House Majority Leader Kevin McCarthy, D-Des Moines.
Lawmakers in 2010 will face a $903 million budget shortfall and federal stimulus money won’t come close to bailing the state out, according to Legislative Services Agency estimates.
Research from the nonpartisan legislative agency indicates that next year’s shortfall will be worse than the tough financial years Iowa faced in the 1980s and 1990s. Next year’s shortfall is roughly 14 percent of the state budget. In the past 30 years, some of the most difficult budget shortfalls were closer to 5 percent.