DES MOINES, Iowa — Against a backdrop of national fears of a recession, Iowa’s economy continues to move forward in terms of revenue. That means money from taxes collected will continue to flow into state coffers.
“The economy is supporting increased revenues to the state so that would seem to indicate how it continues to be strong,” said Kraig Paulson, Chair of the Revenue Estimating Conference. “There is more work to do, but tonight the State of Iowa is in an incredibly strong financial position.”
While Iowa, and much of the country were on a comeback after the pandemic, across the U.S. some of the economy is stalled out due to inflation, and also a fear of a recession.
“Despite lots of press suggesting an upcoming recession, there is currently no sign of such a thing in Iowa due to tax revenue, Iowa employment, and wage earnings,” said Holly Lyons, of the Legislative Service Bureau.
Some Iowa Companies have been looking for new workers for so long they can no longer keep offering more money, according to David Underwood, a citizen member of the panel.
“Everybody’s just kind of sitting back and saying I can’t find it anymore,” said Underwood. “It just is really discouraging to see it, but they’ve just about given up because they can’t find the workers that are willing to show up for work every day.”
Last session the Legislature voted to go along with the Governor on tax cuts, and dropping state income tax on senior citizens. That is projected to reduce state revenue in 2023 by 570 million dollars.