The State of Iowa has a more than $1.9 billion budget surplus.
Governor Reynolds has announced the state has $830 million in reserve funds and holds more than a billion in its Taxpayer Relief Fund. Larger than expected corporate tax payments are triggering a corporate tax cut as well.
In a written statement, Governor Reynolds said it shows tax cut critics were wrong and “growth oriented policies and fiscal restraint” are paying off. House Democratic Whip Lindsay James of Dubuque said instead of lowering costs for Iowans and investing in public schools, Reynolds “is celebrating another huge handout to corporations.”
The last state fiscal year ended June 30, however this is the week the books are officially closed. That’s so late-arriving payments or expenses are accounted for in the previous state budget.