Hawkeye Review: Iowa's $270 million (and growing) problem...
Excerpted from this post at Hawkeye Review
The announcement last Friday from the Revenue Estimating Conference brought into sharp focus one thing: the decisions that are being made in Iowa over the coming weeks have the power to alter the economic course of this state for decades. For those that missed the details, see the Chicago Tribune's take on it here. Namely, this year's revenue -- or to be more precise, taxes and fees on citizens and businesses -- will be $130 million less than expected. Iowa's law requires a balanced budget, so the legislature and Governor Culver must now cut deeply into their budget. Furthermore, next years estimate is $270 million less than originally projected, reflecting a recession that does not improve.