After years of tax cuts targeted to the wealthy, state revenue projections again fall far below spending

DES MOINES, Iowa — Common Good Iowa today released the following statement from Executive Director Anne Discher about this morning's Revenue Estimating Conference (REC):

"The fiscal projections approved this morning by the REC show the folly of a half dozen years of reckless tax cutting that gave the biggest breaks to the richest Iowans and most profitable corporations.

"For the current fiscal year, FY 2027, revenue projections are more than $1.1 billion below the budget lawmakers approved in May. For FY 2028, even if lawmakers were to approve what would be a deeply unpopular flat budget — further disadvantaging our schools and health care and all the other services Iowans depend on — we'd face a deficit of more than $800 million. This is not sustainable.  

"The state economic analysis on which the REC estimates are based tells a tale of two Iowas. Personal income growth is stagnant, personal savings are declining, and consumer confidence is decreasing — even as inflation remains high, the state becomes more reliant on regressive sales and use taxes, and corporate profits are strong. All signs point to an economy extracting wealth from working Iowans to reward a few at the very top.

"Today’s REC projections also demonstrate the reason Iowans should vote no on Amendment 1 on the November ballot. By making harder to raise the corporate or personal income tax — the only tax that can be structured to make the wealthy and profitable corporations pay what they owe — the amendment would encourage lawmakers to solve our budget mess by cutting services and raising other taxes and fees that hit working Iowans hardest.”

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