New budget problem may lead to special legislative session

A new 62-million-dollar hole in state budgeting has been revealed, and it may require a special legislative session to shift money held in reserve to cover the red ink. Governor Vilsack says there’s enough money in reserve to cover it, but he lacks the authority to make such a large transfer. Republican House Speaker Christopher Rants of Sioux City says this situation shows the need to keep some cash in reserve. Rants says every year there’s a debate about whether money should be set aside. He says this situation should make it clear that money must be saved in reserve. Rants says if lawmakers had spent every dime the state has, there’s be no money now to cover this shortfall. Rants says a special session won’t happen too soon, as there are other related matters to discuss.Rants says it’s a perfect opportunity to consider new rules for transferring money within state government. Governor Vilsack has told all his agency directors to hold off on discretionary spending, and he’s expressed displeasure with the three-member board that guesses at how much state tax revenue will be collected. Vilsack’s asked that Revenue Estimating Conference to reconvene immediately to review all its guesses, since this year’s state budget is based on those predictions. Rants says those are “prudent steps.”