Iowa budget surplus more than quadruples to over $1.2 billion
DES MOINES, Iowa (KCRG) - Iowa will have its largest budget surplus since several years ago, according to the governor’s office.
The surplus to the state’s general fund will reach $1,238.6 billion for fiscal year 2021, Gov. Kim Reynolds’ office said on Monday. This is over four times as much as 2020′s $305.5 million surplus, and is the fourth year in a row where the figure increased from the previous fiscal year.
“Iowa is in a very strong financial position due to our fiscal responsibility,” Gov. Reynolds said. “This surplus proves we accomplished exactly what we set out to do—overcome the financial challenges caused by the global pandemic and invest in education, workforce, healthcare, agriculture and technology. We will continue to invest in these important priorities going forward to meet the needs of our citizens and state.”
Fiscal Year 2013 saw a surplus that fell short of the billion-dollar mark at $927.7 million. This preceded four years of decline in surpluses until fiscal year 2017, when the state had no surplus after dipping into cash reserves to cover a small deficit, per state law. A state report attributed those decreasing surpluses due to decreased revenue growth after legislation reduced taxes and made other changes to the Iowa tax code.
After hitting that low mark in 2017, surpluses have grown each of the last four fiscal years.
Iowa’s fiscal year ends on June 30 each calendar year.
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