Reynolds Says State Finished FY2020 with Full Cash Reserves, $305M Surplus

DES MOINES, Iowa – Gov. Kim Reynolds announced today that the State of Iowa will end Fiscal Year 2020 with a balance of $305.5 million in its General Fund. 

“Fiscal responsibility has put the state of Iowa in a strong position despite some significant challenges ranging from a global pandemic to trade disruption,” Reynolds said. “In Iowa, we have turned those obstacles into opportunities, making significant investments in education, agriculture, workforce, technology, and health care. The actions we have taken this year will help Iowa emerge from this unprecedented pandemic stronger than ever before. Going forward, we will continue to invest responsibly in Iowans’ priorities and remain mindful of the potential challenges that still lie ahead.”   

“Iowa is in a strong financial position due to responsible spending practices and our strong cash reserves of over $770 million,” Dave Roederer, Director of the Iowa Department of Management, said. “I commend Governor Reynolds and the Iowa legislature for their efforts to maintain a strong ending balance. We will continue to monitor the impact COVID19 has on our state budget for the coming fiscal year.” 

Following this announcement, Iowa House Speaker Pat Grassley, R-New Hartford, lauded the news.

“House Republicans have consistently championed a cautious and conservative approach to the state budget. It is crystal clear why the nonpartisan Council of State Governments ranked Iowa’s budget as the best in the country to respond to COVID and today’s news is further evidence that this is the right path forward for Iowa taxpayers,” he said.

“Over the years, we have been very intentional about our actions when it comes to the state budget: Plan for the future, account for uncertainty, and make strategic investments. That’s why we built-in a healthy surplus, fully filled our reserve and rainy day accounts, and funded priorities like K-12 education, community colleges, rural hospitals, and public safety,” Grassley added. “Iowans should feel confident that their tax dollars are in good hands with Republicans in charge of the state budget.”

Iowa Senate Majority Leader Jack Whitver, R-Ankeny, pointed to Republican pro-growth policies.

“Today’s announcement of an ending balance of $305.5 million validates the budgeting principles of Senate Republicans. Conservative, sustainable budgets provided reliable funding increases to K-12 education, including nearly $100 million for this fiscal year despite a global economic slowdown as a result of the coronavirus. Iowans can be confident in stable, pro-growth Republican leadership in Des Moines to position the state’s economy to strongly recover from the pandemic,” he said.

FY 2020 closed on June 30th, but the accrual period officially ends on September 30th. During this time, Iowa closes the books and pays out and receives outstanding obligations. Last year’s budget surplus was $289 million dollars.