The Republican state auditor is offering mostly positive reviews about Gov. Terry Branstad’s spending plans for the year ahead. But he does cite potential problems, as well.
David Vaudt commended the governor for working with lawmakers to dramatically decrease the use of money from other funds to pay for the state’s general expenses.
However, he says the state’s employee retirement system is underfunded at 80 percent of the expected amount it needs for future retirees. He says lawmakers and state workers will likely need to increase their contributions to make up for the shortfall.
Although, since the fund is tied to the stock market, its value could rise as the economy recovers.