|Strong Economy; Fiscal Responsibility Led to Increased Revenue Growth|
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Rep. Tyler Olson, (319) 365-1840
STRONG ECONOMY; FISCAL RESPONSIBILITY LED TO
Des Moines, Iowa – State Representative Tyler Olson of Cedar Rapids said today that strong revenue projections announced on Tuesday are evidence of Iowa’s growing economy and the state’s sound fiscal policies.
“Last session, we approved a fiscally responsible, balanced budget that met the priorities of Iowans in health care, good jobs and education,” said Olson. “I’m pleased our economy is continuing to grow this year and state revenues are beating projections.”
The Revenue Estimating Conference (REC), a panel of budget experts that sets state revenue projetions used by the Governor and Legislature, held their quarterly meeting on Tuesday and increased their revenue estimate for the state’s 2008 fiscal year, from 4.2% to 5.1%. The REC estimates that the State will collect $5.935 billion in net general fund receipts this year, which is an increase of $288.6 million over last year.
The growth in the revenue estimate was attributed to growth in the number of working Iowans, keeping unemployment levels low and improving wages. The REC also made its first estimate on next year’s budget (FY 2009), which must be approved by the Legislature during the 2008 legislative session. It estimated FY 2009 revenues will increase by another 2.6%, $156.2 million over this year.
“With the Iowa Power Fund and our focus on renewable energy, I’m optimistic that our economy will continue to grow and create good-paying jobs. We will approve a balanced state budget next year that lives within our means and complies with state law,” concluded Olson.
The REC will meet again in December to review both the FY 2008 and FY 2009 revenue estimates.
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