DES MOINES, Iowa (AP) — A panel of Iowa budget experts says they expect higher than anticipated state revenue this year and they remain cautious about predicting a quick recovery.
The Revenue Estimating Conference on Friday increased the current year estimate of revenue to $8.07 billion or 1.9% growth from the previous year. That is up from a December estimate of 0.5% growth and $7.96 billion in revenue.
The panel estimates state revenue will also increase in the following two years. If the estimated 3.8% growth for the 2022 fiscal year is realized, tax cuts approved in 2018 will not kick in.
That’s because legislators require at least 4% revenue growth before lowering the tax brackets.