The Iowa Legislature’s Revenue Estimating Conference (REC) recently convened and released their quarterly predictions, and the state’s income is expected to be very high in the next fiscal year.

The REC projected a 3% increase in revenues during the current fiscal year, which will grow the state’s overall budget to around $8.2 billion. State Senator Jake Chapman, (R) District 10, believes the financial progress being made in the state is a direct result of the tax cuts and economic programs that have been instituted by the Legislature in recent years. “I think what we’ve seen over the last couple weeks with the REC, as well as our receipts coming into the state showing that we have a nearly $300 million surplus, is that Iowa’s economy is very strong. People are investing more, they’re spending more, we’re putting more money back into the pockets of middle class Iowans, and I’m excited to build upon those successes as we come into the (20)20-21 session.”

Chapman adds, at this point it’s difficult to predict how the Legislature may allocate the $300 million surplus, or even how much of it they’ll spend. However, he feels confident that they’ll continue to invest in children’s mental health programs and the Future Ready Iowa initiative. He also would like to use the funds as leverage for instituting more tax cuts, in order to prevent such a large surplus in the future.