State faces layoffs with budget downturn

Governor Tom Vilsack says with the “sudden, severe” downturn in state tax revenues, he’ll scale back his budget plan for next year. State financial experts yesterday trimmed their estimate of state tax receipts by 300-million dollars over the next 15 months. It could lead to layoffs, according to Vilsack. And Vilsack’s starting a top-to-bottom review of state government, with the goal of combining departments and getting rid of some services. Republican legislators predict the state budget will go seven million dollars in the red this year. Vilsack says Republicans didn’t count some accrued money due the state, and the Governor says this year’s state budget will end with about nine million dollars in the bank. House Republican Leader Christopher Rants of Sioux City says cuts are needed immediately. House Speaker Brent Siegrist, a republican from Council Bluffs, says the G-O-P’s ready to shrink the size of government.