The three-member Revenue Estimating Conference (REC) predicts that state tax receipts will grow this fiscal year by less than 2-percent — which the panel calls “steady but not exuberant.” The governor’s top budget aide David Roederer is on the REC. He says they’re not too worried that the federal government shutdown will change the growth in Iowa’s economy.
“The Washington D.C. thing, I’m not as concerned about. I do not think it will go on so long that it will start doing real damage to the economy. I don’t think that’s in anyone’s best interest to do that,” Roederer says. Roederer says so far, Iowa has enough money on hand to cover spending on things such as Medicaid, without reimbursements from the federal government. “After 30 days however, if we get into a period where we won’t be getting the reimbursements, then our financial picture and our ability to do that may change significantly,” Roederer says.
But he can’t say what the long-term impact would be. “We just don’t know for sure yet.” The three-member Revenue Estimating Conference reports corporate tax receipts are strong, and more and more Iowans are employed. All of that will help the state collect nearly $6.7-billion in taxes this fiscal year, a slight increase over last year.