Iowa Budget Panel Predicts Growth Next Year

DES MOINES, Iowa - It looks like the state will see a little less money because of COVID-19.

The Revenue Estimating Conference is predicting tax collections will drop slightly in the current fiscal year before picking up steam by next summer.

The group says federal stimulus money has helped the state weather the pandemic.

It's not predicting any harm if Congress fails to pass another stimulus plan, as hiring is strong and the state's jobless rate continues to fall.

Iowa's unemployment rate is 6 percent after reaching 11 percent in April, although it's still far above the pre-pandemic level of 2.8 percent.

The panel is predicting growth in state revenue of 4 percent in the next fiscal year.

The Revenue Estimating Conference released its latest report Tuesday. It will meet again in December to come up with revenue estimates that Governor Reynolds will use to make budget recommendations to the state legislature.

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