State tax revenues plunged 39 percent in April.
One reason for that double-digit drop is the delayed deadline for paying state income taxes. Individuals and corporations normally must pay their state income taxes by April 30th, but during the pandemic state officials pushed the due date to July 31st.
State officials will have to come up with an estimate of the pandemic’s economic impact as they rework their state budget plans for the fiscal year that begins July 1st. The Iowa legislature is currently scheduled to reconvene on May 15th. Leaders say their main goal is passing a new state budget plan. Governor Kim Reynolds says she’s meeting with her staff to come up with budget recommendations.
Moody’s Analytics, a research firm focused on finance, has estimated the State of Iowa’s budget must be cut at least five percent.
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