Revenue Estimating Conference lowers projection

October 20, 2016

The state Revenue Estimating Conference (REC) last week lowered projections for tax collections. The REC projected that Iowa will collect $7.31 billion in the fiscal year that began July 1 - that’s about $49.3 million less than it predicted in March. Although the amount would be less than projected, it would still be 5.6 percent more than was collected in the last fiscal year. Factors creating the growth slowdown include a downturn in agricultural income, uncertainty created by the divisive presidential race, interest rates and international trade.

The next meeting of the REC will be Dec. 12. The projections from that meeting will set the budget amounts the executive branch and legislators use to begin budget discussions, during the legislative session.The REC estimates that for fiscal year 2018, which begins July 1, 2017, the state’s revenue will grow 4.1 percent to $7.61 billion.

Read More: Experts downgrade Iowa revenue growth estimates (The Gazette)