Year-to-date revenue growth through January 2015 is a positive 3.1%. However, when the General Assembly and Governor agreed to the FY15 budget, the official revenue estimate on which that budget was based was a positive 4.5%. If this deficit were to continue through the end of FY15 (June 30, 2015) then the state would collect $98 million less than anticipated and that would likely result in the need to use cash reserve funds to make up the difference. However, during the income tax season there are often wide swings in revenue collections that cause the state’s position relative to the revenue estimate to fluctuate significantly from month to month.
Other data points from the January 2015 DOM memo:
- Personal income tax collections have increased by 4.2% year-to-date (estimate was an increase of 5.7%)
- Sales / Use tax collections have increased 4.4% year-to-date (which is exactly where the revenue estimate placed this growth)
- Corporate income tax collections have declined by 5.6% year-to-date (whereas the revenue estimate anticipated a 3.8% increase)
This week the final piece of Governor Branstad’s legislative agenda was unveiled in the form of a new quality of life initiative called IowaNEXT. This legislation would replace a number of current state programs, consolidate the resources under a new IowaNEXT Commission, and add significant new resources to encourage quality of life investments in communities across Iowa.
- Eliminates the Vision Iowa Board and program;
- Eliminates the Iowa Great Places Board and program;
- Eliminates specific funding for state park infrastructure;
- Creates the IowaNEXT Commission that includes the heads of the Iowa Economic Development Authority, Iowa Department of Transportation, Iowa Department of Natural Resources, and Iowa Department of Cultural Affairs – and also adds seven public members who have relevant experience;
- Appropriates $26 million to jump start the program;
- Contains exceptionally broad language regarding what projects potentially qualify for funding and what criteria will be used to score applications.
Efforts on behalf of Community Bankers of Iowa:
Represented CBI at a meeting with Governor Branstad and Lt. Governor Kim Reynolds to lobby on behalf of efforts to raise the gas tax and provide additional dollars for road and bridge construction.