In a week that brought hundreds of layoffs and two new reports showing a continued economic downturn, Iowa Governor Chet Culver tried to reassure Iowans that the state was on sound financial ground.
John Deere announced it will lay off nearly 700 at its Ottumwa plant; Principal Financial Group, the state's largest private employer, announced it is eliminating 220 jobs, including 140 in Des Moines; and the University of Iowa Hospital will cut an unspecified number of positions.
The value of the Iowa Leading Indicators Index decreased by 0.9 percent in April from 99.9 to 99.0, the sixth consecutive monthly drop of 0.9 percent or greater, according to a report from the Iowa Department of Revenue. During the six-month span through April, the index dropped 6.3 percent, reflecting "widespread weakness in the Iowa economy with all eight components experiencing a 0.5-percent or greater decrease over the last half year," the report said.
And a report by the Legislative Services Agency showed general-fund receipts fell $161.4 million over the past two months, and the state's ending balance will be $44.6 million. State fiscal experts said cash year-to-date growth is $90.4 million below the official estimate and warned that it's possible this year's revenue shortfall will be more than the $94.6 million available from the projected ending balance and economic-emergency fund.