DES MOINES -- Lawmakers crafting the next state budget will have $20 million fewer than expected, a minor adjustment in a $7.6 billion state budget.
The state panel that estimates future state revenues met Friday to provide its latest figures in what will be its final update before state legislators set state spending for the budget year that begins July 1.
The panel projects state revenue will be $7.85 billion for the next fiscal year; that’s down $20 million from the panel’s December projections.
The adjustment is a reduction of .25 percent. And Republican budget leaders in the Iowa Legislature recently proposed spending levels at roughly $7.6 billion, still hundreds of millions of dollars below Thursday’s adjusted revenue projections.
“House Republicans have offered a responsible, conservative budget that invests in priorities and leaves a healthy ending balance,” Pat Grassley, a Republican from New Hartford who leads the House budget committee, said in a statement. “Our budget plan does not require any adjustments after today’s (updated figures).”
Majority House Republicans have proposed a $7.67 billion state budget for the coming fiscal year. Senate Republicans proposed a status quo state budget of $7.62 billion.
The panel also gave its initial projection of just 2.6 percent growth in state revenue for the budget year that begins July 1, 2020.
“The results of today’s (panel) meeting confirm Senate Republicans cautious approach to budgeting for the upcoming fiscal year,” Jack Whitver, leader of the Senate Republicans, said in a statement. “Conservative budget targets are more important now than ever.”
The panel also updated projects for the current budget year, which ends on June 30. The panel projected $7.61 billion, an increase of $5 million higher than its December estimate. That means lawmakers should not have to make mid-year budget cuts.