(Radio Iowa) – Governor Reynolds and other Republicans say the latest state revenue projections show tax cuts are working as intended.
Democrats say the data shows a looming crisis as the governor’s budget plan calls for spending more than the state will collect in taxes and requires using 900 million dollars in state reserves. Kraig Paulsen, the governor’s top budget advisor, says there are no surprises in the numbers because recently passed tax cuts are working as expected. Paulsen and other members of the state Revenue Estimating Conference predict tax collections will fall well over six percent during the current year and drop nearly seven percent the following year.
Democrats say using one-time withdrawals from state reserves for on-going state operations is bad budgeting.
