In March, the Revenue Estimating Conference estimated that the State of Iowa would end the fiscal year with an ending balance of $31.7 million. Instead, the state finished with a surplus four times larger than expected – $127.3 million. $95.6 million more than what was predicted in March.
The Revenue Estimating Conference (REC) estimate, adjusting for revenue changes from 2018 Legislative Session, was 0.6 percent growth in the FY2018 Budget. Actual growth was 2.0 percent, the Iowa Department of Management announced.
They broke down the revenue picture for the state at the close of the fiscal year:
- General Fund revenues received by June 30, 2018, on a cash basis was $8,830.8 million or $11.3 million more than the REC estimate.
- Revenue Accruals (tax payments due June 30, 2018, that came in after June 30, 2018) totaled $48.0 million; the REC estimate was -$2.7 million.
- The REC estimate for tax refunds was -$1,177.4 million, actual refunds issued for FY2018 was -$1,135.1 million.
- Projected FY2018 General Fund revenue was estimated to be $7,280.6 million. Actual FY2018 General Fund revenue is $7,383.9 million.
- Projected FY2018 net General Fund appropriations was $7,248.9 million. Actual FY2019 net General Fund appropriations are $7,256.6 million.
- Projected FY2018 General Fund ending balance was $31.7 million. Actual FY2018 ending balance is $127.3 million.
“We are striving to be fiscally responsible with your tax dollars, and I am proud to announce Iowa will end the fiscal year with a $127 million surplus,” Iowa Governor Kim Reynolds said responding to the news. “Our economy is growing, incomes are rising and our state’s budget is a reflection of that. But I’m never satisfied. I’m going to continue to push for policies that grow our economy, invest in education and affordable health care and maintain Iowa’s status as the #1 state in the country.”