State Estimates Revenue To Grow By $33 Million
(Des Moines) — Legislators considering mid-year cuts to the state budget have
a new figure to consider. The panel of financial experts who set the official
estimate of state tax collections is predicting 33 MILLION more dollars will
flow into the state treasury in the current budgeting year.
photo from Radio Iowa
That’s Dave Roederer (ROH-der-er), the governor’s budget director. He’s also a member of the panel that made Friday’s revised state tax estimate. Roederer is reluctant to say how policymakers should react to Friday’s news.
Roederer suggests the debate will now shift to how much of a “cushion” in the state budget legislators and the governor decide may be necessary. While 33 MILLION more dollars are EXPECTED to flow into the state treasury, if NO cuts are made, the current state budgeting plan would see nearly all of that spent by June 30th — the final day of the current fiscal year. Republican lawmakers have indicated making sure there’s several million dollars extra in the budget plan is a priority. That money could cover any shortfall if state tax collections fall short of expectations. That’s what happened last summer, forcing the governor to dip into the state surplus to cover a deficit.
Legislators React To Revenue Estimates
(Le Mars) — Reacting to the state’s revenue estimates, State Representative Chuck Holz of Le Mars says the 33 million is about what lawmakers were expecting.
Holz says the legislature will now have to determine how much money to set aside, if the estimates fall short as they have during the past estimates, causing legislators to “borrow” money in order to cover all the state’s expenses. The Le Mars lawmaker says the governor, the House, and the Senate each have their own ideas as to how much money should be put aside.
Holz says if the revenue estimates are accurate, the state should be fine with meeting its expenses. However, the Le Mars Republican Representative says if any unforeseen circumstances should occur, such as the possible consequences of
retaliation from trading partners from President Trump’s tariff on steel and aluminum, then Iowa’s economy may suffer, thus resulting in again a budget shortfall. Holz says he opposes the president’s plan calling for tariffs, saying Iowa’s economy would lose with farmers and agricultural businesses suffering the most.
Holz says the state legislature will begin to formulate the next fiscal budget, now that they know the revenue estimate numbers.
Waterloo Retirement Community To Be Demolished Then Rebuilt
WATERLOO, Iowa (AP) – An organization is planning to spend $70 million to gradually demolish and rebuild a retirement community in northeast Iowa.
The Waterloo-Cedar Falls Courier reports that Friends of Faith Retirement Homes Inc. announced it’ll invest in reconstructing its independent living apartments and skilled nursing center. The senior housing nonprofit opened Waterloo’s Friendship Village in 1968.
The Waterloo Planning, Programming and Zoning Commission voted Tuesday to endorse a zoning request and special permit for the project expected to begin next year.
Friendship Village has stopped new admissions to prepare for the project, which will be developed in phases to avoid displacing existing residents during the process.
Friends of Faith attorney Mike Young says the result “will be a first- class facility that the neighborhood and the city … can be very proud of.”