Iowa Raises Revenue Forecasts: $8.54 Billion for FY2027, $8.83 Billion for FY2028, With About a $1.1 Billion Budget Gap
DES MOINES — Iowa's Revenue Estimating Conference met in Des Moines on October 16 and set projected state General Fund receipts for fiscal year 2027 at $8.54 billion, up 2.8 percent from $8.31 billion in fiscal 2026 and about $66 million above the panel's March estimate.
The three-member panel also projected fiscal 2028 receipts of $8.83 billion, a 3.4 percent increase. Its estimates guide the governor and Legislature in building the state budget; fiscal 2027 began on July 1 and runs through June 30, 2027.
The Legislature's enacted fiscal 2027 budget is $9.65 billion, leaving a gap of about $1.1 billion between projected revenue and spending to be covered from reserves. At the close of fiscal 2026, the state's Taxpayer Relief Fund held about $3.2 billion and the ending balance stood at about $1.6 billion. Kraig Paulsen, director of the Iowa Department of Management and a panel member, said the state is in an extremely strong cash position and expects the relief fund to last until revenues catch up. State revenue had shrunk in recent years following tax cuts that brought the individual income tax to a flat 3.8 percent rate in 2025.
In a statement after the meeting, Governor Kim Reynolds said the latest projections reflect a strong and stable financial outlook, with upward adjustments since March signaling improved economic activity statewide. Senate Democrats criticized the gap as unsustainable, while the Senate Republican majority leader said the projections show Iowa's economy is strong and resilient.
Senate Majority Leader Mike Klimesh said the latest projections show Iowa's economy is strong and resilient. Iowans will elect a new governor on November 3; Reynolds is not seeking reelection.
Published by GSM · USA (original Chinese edition)
Photo: 图：爱荷华州议会大厦（得梅因）穹顶局部。Paul R. Burley 摄，CC BY-SA 4.0，取自维基共享资源。
