state revenues

by Robin Opsahl, Iowa Capital Dispatch
October 16, 2026

Iowa is expected to spend over $1 billion more than it raises in revenues in the current fiscal year, the Revenue Estimating Conference found Friday — but Iowa Department of Management Director Kraig Paulsen said this prediction remains in line with Republicans’ expectations about the initial impacts of income tax cuts.

The Revenue Estimating Conference, a three-member panel, met Friday to discuss the state’s expected economic outlook. When the conference last met in March, the members projected state revenues would decline by 9.3% in the fiscal year that ended June 30, 2026, but that the state would see a 4.4% increase in revenue growth in fiscal year 2027.

With the books closed for FY 2026, Iowa saw a 7.1% decrease in revenue compared to the previous year — a drop of just under $635 million. Jennifer Acton, the director of the Fiscal Services division of the nonpartisan Legislative Services Agency, said this figure means revenues for the year were $205 million higher than the REC projected. But, she said, the year was still significant for being “the third year in a row with a net revenue decrease after 90 straight years of net revenue increases.”