DES MOINES, IOWA (December 12, 2024) — Governor Kim Reynolds released the following statement today in response to the December REC projections for Fiscal Year 2025 and 2026:
“The REC projections are what we expected due to our responsible, growth-oriented fiscal stewardship. The State of Iowa will end Fiscal Year 2024 with a balance of $2.05 billion in the General Fund, $961.2 million in reserve funds, and $3.75 billion in the Taxpayer Relief Fund. Iowa’s conservative budgeting practices and commitment to shrinking the size and scope of government have once again put our state in a strong financial position just as our low, flat income-tax rate of 3.8% takes effect next year for every Iowa taxpayer,” Gov Reynolds said.
“Our tax cuts, which return funds to hard-working Iowans, are driving the reduction of state revenue — but for the tax cuts, Iowa would see revenue growth. And yet, unlike so many states, Iowa is in a great financial position in no small part because of our spending discipline," Iowa Department of Management Director Kraig Paulsen said. "And because of our strong fiscal health, Iowa has the flexibility to address the priorities of Iowans."
