Experts drop state revenue estimate, say more cuts won’t be needed

The experts that try to predict state revenue have once again lowered their estimates. The Revenue Estimating Conference says Iowa will collect 15-million dollars less in taxes than they predicted in October. Legislative Services Bureau Director Dennis Prouty says, unlike past cuts in revenue projections, this should not lead to more state spending cuts.He says the governor’s recent across the board budget cut had enough cushion in it, so if the estimates hold true, the legislature shouldn’t have to make another cut. Prouty says things are still positive, despite the lowered estimate.He says things are rebounding, but they’re not quite where they though they would be in October. Prouty says the economic outlook for next year continues to be good.He says the indicators show the economy rebounding somewhat, and he says we should be okay in ’05 and hopefully he says things will move faster than they projected. Prouty and the rest of the budget panel are predicting that tax collections will grow by 63 million dollars in 2005. That though hinges on a recent court ruling that upheld the Governor’s veto of a utility sales tax cut. If the Iowa Supreme Court overrules the lower court, the tax cut will kick in and the 63-million dollars will not materialize.