Governor Kim Reynolds Will Dip Into Rainy Day Fund
Reynolds Press Conference 061417
Iowa is dealing with an ongoing economic crisis, with a steady decline in projected state revenues. Republican Governor Kim Reynolds said at her weekly press conference yesterday that the decline will force Iowa government to borrow $50 million from a state economic emergency fund.
“By statute I do have the authority to transfer up to 50 million from the fund without calling back the legislature. So we’re hopeful that we can manage the remaining budget within that amount.”
Reynolds says Iowa is actually better off than a lot of states, because the economy is still growing and unemployment is low.
“And the state does have 600 million dollars in our cash reserves. So the bottom line is this, Iowans will have continuity of government.”
Reynolds says that she hopes to avoid across-the-board budget cuts, and to prevent a special session of the Iowa Legislature to address the state's budget problems.