Iowa Legislature avoids special session; $13 million to be borrowed from reserves
owa budget officials said Wednesday they'll be able to address the state's financial issues without calling lawmakers into a special session — a possibility that has loomed for months as revenue failed to keep pace with expectations.
Iowa will close out the year ending June 30 with revenue falling another $14.6 million short of what the state spent. Gov. Kim Reynolds will pair the state's $1.6 million ending balance with a $13 million transfer out of the state's economic emergency fund to cover the shortfall, said Department of Management Director David Roederer.
Reynolds would have needed special approval of the Legislature to transfer anything more than $50 million out of that account.
“This has been a difficult budget year, but I am pleased we were able to manage lower-than-expected revenues without cuts to education or Medicaid,” Reynolds said in a statement. “We have been monitoring funds daily since the end of the fiscal year on June 30 and took a measured approach in dealing with the state’s finances.”
Read more: http://www.desmoinesregister.com/story/news/politics/2017/09/20/iowa-legislature-avoids-special-session/682199001/