DES MOINES, Iowa (AP) — State budget experts said Thursday that revenue projections for the current fiscal year and next year are running ahead of their October predictions, giving the governor some additional money as she prepares her budget for next year.
The three-member Revenue Estimating Conference said state income is up about 2 percent or nearly $156 million from the previous year. The group anticipates a 2.9 percent increase in revenue for next year, or about $234.4 million.
That would bring tax collections to nearly $8.25 billion.
The estimate for next year is important because the governor must base her 2021 budget on the estimate released Thursday.
Iowa Department of Management Director David Roederer said the economy has been showing consistent strength and has maintained state revenue at higher levels than anticipated in October. However, he and the other conference members continued to express concerns that a recession would occur some time in the future, though such a downturn didn’t seem imminent.