A big, fat OUCH. The Revenue Estimating Conference met today to project the budget for the remained of 2009 and into 2010. It isn't pretty. The new estimate for 2009 is a decrease of $158 million in total net receipts as compared to actual FY 2008. For 2010: The new estimate is a decrease of $164.4 million in total net receipts as compared to estimated FY 2009.
Contrary to what you might be hearing - Iowa does not have a revenue problem, we have a spending problem. Added state programs, full time employees to go with those programs, money to repair historic pipe organs, and satellite radio in state vehicles adds up. Where will it stop?
Hello! What have we been saying the last two years? Spending at an unsustainable level has put Iowa in the red. Be prepared, my friends, bad things are on the horizon.
Here is a great suggestion for the spending practices going on in the state: