Economy hits Iowa budget - KWWL - Eastern Iowa Breaking News, Weather, Closings

Economy hits Iowa budget

DES MOINES, Iowa (AP) -- A state budget panel says Iowa will collect $40 million less in taxes this year because of economic turmoil throughout the nation.

In a meeting Thursday, members of the Revenue Estimating Conference agreed Iowa's economy is slowing down, prompting them to project 1.2 percent growth in tax collections over last year. That's down from an earlier projection of 1.8 percent.

The panel also projects that next year's budget will be essentially flat, growing by only one-tenth of a percent.

Still, House Speaker Pat Murphy notes that the budget remains balanced and the state has $620 million in reserves.

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