Budget experts say Iowa revenue growth will slow
DES MOINES, Iowa (AP) — State budget experts say revenue growth likely will slow in the coming year.
The three-member state Revenue Estimating Conference said Monday revenue in the current fiscal year is expected to grow 1.4 percent to total $7.97 billion. Next year the panel foresees a 2.7 percent increase, taking the state tax collections to just over $8.18 billion.
The revenue growth estimates are significantly slower than last year’s growth of 6.4 percent, in part because of tax policy changes.
The panel also blamed slow revenue growth on federal trade and energy policies that have reduced sales of farm products. Iowa also lacks enough skilled workers to fill construction and manufacturing jobs, creating an economic drag.
Although a recession isn’t projected soon, panel members called for a cautious spending policy.
The group meets again in December. The governor must base her 2021 budget on that estimate.