With the 2020 Iowa general assembly set to resume tomorrow, one of the biggest tasks over the next couple weeks will be to craft the fiscal year 2021 state budget.

To that end, the Legislature’s Revenue Estimating Conference (REC) convened at the end of last week to carefully examine and predict the economic impact the COVID-19 pandemic will have. Based on the latest projections, the state is estimated to be down $150 million in revenues from the final March estimate, which would still represent a one-percent growth from the current fiscal year. There are expected to be budget cuts, though, particularly with a two-percent allowable growth increase already approved for K-12 public schools.

District 10 State Senator Jake Chapman (R) says the chambers will do their best to avoid substantial cuts, and he points out there is around $800 million available in the “rainy day fund” to cover needed expenses. However, he notes that fiscal responsibility has been the hallmark of the Legislature during his time in office, and he expects some penny-pinching as they craft the budget. “Iowans are tightening their belts, and we should do the exact same. And so as I look towards the budget, I want to make sure that we’re keeping that in mind that there is going to be clearly some sort of economic impact to the State of Iowa, not only for fiscal year ‘20 but for fiscal year ‘21 and perhaps even into the future. So we need to make sure we’re just being responsible with that and not overextending ourselves at the state level.”

To learn more about the current legislative session, click the link below to listen to the recent Perry Fareway Let’s Talk Dallas County program with Chapman.

https://www.raccoonvalleyradio.com/2020/06/01/lets-talk-dallas-county-6-1-2020-jake-chapman/