De-appropriations Bill Heads to Gov. Reynolds’ Desk

The House and Senate approved of a de-appropriations bill for fiscal year 2018 this week, and that bill will now head to Gov. Reynolds’ desk for her review. The passage of the bill comes on the heels of the latest revenue projection by the Revenue Estimating Conference that indicates the state will see increased revenues over the next two fiscal years, but still have to de-appropriate for fiscal year 2018. The bill will cut the FY18 budget by $25 million and also includes a $10 million adjustment. The Revenue Estimating Conference projected budget growth for FY19 and FY20, but that’s primarily due to the consequences of federal tax reform. Legislative leaders have indicated that any increase in the state treasury due to federal tax reform should be given back to Iowa citizens in the form of a tax cut.