(The Center Square) – Iowa Gov. Kim Reynolds is holding a public meeting Wednesday on the state’s budget.
The meeting gives Iowans a chance to comment virtually on the budget for fiscal year 2025, according to a news release from Reynolds’ office.
The Revenue Estimating Conference said the state’s revenues for the fiscal 2025 budget will drop about 1.1% to $9.6 billion. The state has a surplus of $1.83 billion from fiscal year 2024 that Reynolds said she wants to use for tax relief.
The state’s built-in expenditures for the FY 2025 budget are estimated at $27.8 million, a drop from $36.9 million in fiscal year 2024, according to the Legislative Services Agency state budget preview.
“For the FY 2025 built-in estimate, the Education Savings Account, Technology Reinvestment Fund, and Department of Education Instructional Support are the three largest increases, totaling $57.2 million,” the LSA said in the preview. “Projected increases are partially offset by a projected $48.1 million decrease in the appropriation for K-12 School Foundation Aid.”
The $48.1 million drop in school revenues is based on zero pupil growth and an increase in statewide taxable valuations of 4.7%, the LSA said.
“This leads to an increase in the Uniform Levy and a decrease in the State Foundation Aid,” LSA said in the preview. “The Uniform Levy and State Foundation Aid are 88.4% of the district cost per pupil.”
The drop in school foundation aid also includes a reduction for area education agencies of $7.5 million, “resulting in an increase of $22.1 million to restore the additional FY 2024 AEAs,” the document said.
Budget requests from the state’s six departments are up by $24.2 million over last year to $8.6 billion, according to LSA.
The public budget hearing takes place at 2 p.m. Wednesday.
Lawmakers return to Des Moines on Jan. 8. Reynolds will address the Legislature on Jan. 9.
