End of FY 2012 Report
By State Representative Jeff Kaufmann (R-Wilton)
Former House Majority Leader Pro-Tem
I am proud of the job we did the last two years to get our fiscal house in order and clean up the mess from the previous two years. Continued fiscal responsibility by the government and diversification of our businesses are critical to economic long-term success for our citizens.
Fiscal year 2012 ended July 1 with state revenue growing at just over 5 (5.04) percent. Total net receipts to the state increased $289.5 million, when compared to FY2011. The revenue figure is higher than what the Revenue Estimating Conference (REC) had estimated at the March 2012 meeting, when it increased the FY12 number to 2.6 percent. This amounts to $136.4 million more than the REC estimate.
The Cash Reserve Fund will be fully funded at $466.8 million. This is a significant change from two years ago when spending by former Governor Culver and the Democrat majority left the Cash Reserve Fund short of its statutory target (7.5 percent of the Adjusted Revenue Estimate). The Economic Emergency Fund will also be fully funded at $155.6 million, and the Taxpayers Trust Fund will also be full at $60 million. This how taxpayers expect us to manage their money.
When the Legislature adjourned in May, the projected ending balance in FY 2013 was $328 million. Based on the June 30 revenue number, the ending balance for FY 2013 would be $464.4 million.
It is important to remember that these numbers are not final. There will be some receipts (accruals) that will be deposited in July and August, and some expenditures will be subtracted. These include performance of duties and the decisions of the State Appeal Board. In the end, it is unlikely that there will be major changes when the books for FY 2012 officially close at the end of August.
All would be good and promising, but we need rain…badly…throughout Iowa. This could severely impact our state budget and thousands of farmers and farm-related businesses. Fortunately, Governor Branstad is attempting to pro-actively address drought issues to benefit all Iowans.
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