December Revenue Estimating Committee Meets
Budget predictions for 2009 and 2010 fall short

The Revenue Estimating Conference (REC), comprised of the Governor or their designee, the Director of the Legislative Fiscal Bureau, and a public member selected based upon their expertise, met this week.

The REC is estimating that State revenues will experience negative growth over the next two fiscal years, meaning the State will have less money to spend than in Fiscal Year 2008 as the REC decreased their earlier estimates for both FY 2009 and FY 2010.

Here are the numbers from the REC meeting:
FY 2009
-The estimate for FY 2009 is nearly $100 million less than the REC’s estimate in October.
-Total net receipts plus transfers for FY 2009, (money available to spend) is estimated to be $6,052.0 million.
-This equals a negative growth of $32.5 million as compared to FY 2008 actual receipts.
-If you plug the new estimate into a balance sheet; the State budget has a hole of $130 million for FY 2009, which is the budget year we are currently in.
-The Governor has proposed a total of $77 million worth of budget “savings”; He needs to look a little deeper because he is $53 million short of what is needed to balance the FY 2009 budget.

FY 2010
-The estimate for FY 2010 is nearly $133 million less than the REC’s estimate in October.
-Total net receipts plus transfers for FY 2010, (money available to spend) is estimated to be $6,025.8 million.
-This equals a negative growth of $26 million as compared to the REC estimate for FY 2009 actual receipts.
-If you plug the new estimate into a balance sheet and include the anticipated built-ins; the State budget has a hole of $690 million for FY 2010.

Responsible budgeting must be incorporated into every state-sponsored program when it comes to spending your money. The Democratic Majority cannot continue to dole out money for unsuccessful programs and projects that never come to fruition.

Senate Republicans will continue to fight for Iowa taxpayers by opposing the further raiding of the Senior Living Trust Fund, protecting the integrity of our savings accounts and voting against tax increases.