Iowa Governor Culver’s Statement on Revenue Estimating Conference

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October 7, 2009 -- DES MOINES – During a press availability at the State Capitol, Iowa Governor Chet Culver spoke with reporters regarding today’s Revenue Estimating Conference report, which projected an 8.4% decline in revenue. The following is a transcript of the Governor’s statement.

“The unanimous decision by the Revenue Estimating Conference today confirms my belief that the national economic recession continues to have a significant negative effect on our state’s economy. This great recession was caused by bad policies in Washington D.C., and bad practices on Wall Street.

“Today’s REC figures are a stark reminder of the impact this recession is having on our state, and on every state across the nation.

“Let’s review the status of Iowa’s budget:

“First, I proposed and the legislature approved a balanced budget for fiscal year 2010, which began on July 1. This budget was based on the official REC estimates from their March meeting last spring. The budget included a nearly $100 million ending balance, and $373 million in reserves.

“However, today’s projected decline in revenue of 8.4% means state government will now have $414 million less to spend this fiscal year.

“As Governor, I am obligated under the Iowa constitution to balance the state’s budget every year. Let me be very clear: I will. Unlike the federal government, Iowa cannot run a deficit, nor can we simply print more money to pay our bills.

“So, this afternoon I want to let you know the steps I am taking today to deal with this.

“First, I have directed the Department of Management and Director Oshlo to recast the state’s fiscal year 2010 budget to appropriately reflect today’s estimate by the REC. I will review these new budget figures first thing tomorrow morning.

“Second, tomorrow at 2:00 p.m., I will announce the specific steps I will take to solve this budget challenge and balance the fiscal year 2010 budget.

“Thank you.”

Source: Iowa Governor