(Radio Iowa) The State of Iowa has nearly five-and-a-half BILLION in unspent tax dollars that the governor’s promising much of it will be the fuel for tax cuts.
The final report on the state fiscal year that ended June 30th shows the state collected one-point-eight BILLION more in taxes than was spent. Another 900 million is deposited in reserve funds, but the so-called Taxpayer Relief Fund has two-point-74 billion in it. Governor Kim Reynolds, a Republican, says some see that surplus as government not spending enough. Reynolds says she views it as an over collection of taxes from Iowans. Reynolds has previously said she wants to get rid of the state income tax by the end of her current term as governor. In the written statement issued Wednesday, Reynolds says she looks forward to cutting taxes again next legislative session and returning this surplus back to the people of Iowa.
The budget surplus from the last state fiscal year will be deposited in that Taxpayer Relief Fund in January. The 900 million dollars will stay in the state’s economic emergency and cash reserve accounts. Senator Janet Petersen of Des Moines, the top ranking Democrat on the Senate Appropriations Committee, says the governor’s tax plans favor corporations and special interests. Petersen says while Governor Reynolds is promising more giveaways to come, middle-class Iowa families still aren’t getting ahead.