Iowa lawmakers learned last week how much additional funding they will get to set up the state’s budget going into the 2016 fiscal year.

The Revenue Estimating Conference (REC) projects that the state will generate $180 million in extra revenue, which is $20 million less than its previous report last December.

District 47 Representative Chip Baltimore believes that the decrease will have a ripple effect on the budget.  The House was hoping for $200 million of projected revenue so that $100 million could go to education, $50 million to Medicaid and $50 million to state employees increase in salaries and property tax reform.  Now with the decreased number, Baltimore adds that they will have to dip into their surplus to cover any extra expenses.

“That’s why you have a surplus, in case revenues don’t come in the way you expect them too.  We don’t have a crystal ball.  We’re never going to get it exactly right because we can never fully predict with the economy is going to do.  But that’ why we budget conservatively.”

The REC reports that the current fiscal year is projected to have a 5.7 percent increase over last fiscal year’s revenues while next fiscal year’s revenues are anticipated to go up another 4.8 percent.  Baltimore is thankful to have a surplus to draw from, but he doesn’t want to repeat what the state went through in the 2009-2010 budget season when the legislature had to make a ten percent across the board cuts.

“It devastated our education system.  It devastated a lot of the other state agencies that were trying to do some good work.  That’s why we need to be so very cautious when we’re committing to a budget.”

The legislature is obligated to go with the final REC report and Baltimore is hopeful to complete the budget before the end of the session.