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Mid-year budget cuts possible in Iowa

State official blames revenue growth below expectations.

Posted: Dec 11, 2017 5:50 PM

DES MOINES, Iowa (AP) - A key state official says mid-year reductions are possible next session because Iowa's revenue growth for the current budget year remains below initial projections.


Department of Management Director David Roederer said Monday the state's roughly $7.2 billion budget could be reduced between about $45 million and $90 million when lawmakers return in 2018.

Roederer's comments came after a three-person panel known as the Revenue Estimating Conference presented its latest budget forecast. The panelists indicated Iowa's economy continues to grow but at a slower rate.

Roederer says Gov. Kim Reynolds will have different options in addressing the expected shortfall, including cuts to department budgets. Previous sluggish growth led lawmakers to reduce agency budgets and borrow from reserves.

Reynolds is expected to present budget recommendations in January.

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