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Report says state of Iowa's revenue declined over 8% in FY 2025, projects further decline
Iowa's fiscal year 2025 revenue fell by $816.6 million, an 8.4% decrease, with projections showing a potential $1 billion deficit in 2026 due to tax cuts and budgeting issues.
- On June 30, 2025, the Legislative Services Agency reported FY 2025 revenues fell $198 million short of the Revenue Estimating Conference's March $9.020 billion forecast for the fiscal year July 1, 2024 through June 30, 2025.
- Accelerated tax cuts from a 2024 law and the Education Savings Account program, plus reliance on one-time federal funds, contribute to Iowa's revenue decline, critics say.
- State Auditor Rob Sand warned trends point to an over $1 billion deficit for FY 2026 and Iowa's first yearly budget shortfall since 2017, raising concerns for Iowa families and communities.
- Gov. Kim Reynolds' office said Iowa has a $2.1 billion surplus, $850 million in reserves, and $4.1 billion in the Taxpayer Relief Fund, and the Revenue Estimating Conference will meet Oct. 16.
- Critics warn opponents say planned draws from the Taxpayer Relief Fund and surplus clash with five-year plans and could strain Iowa's economy amid agricultural headwinds.
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14 Articles
14 Articles
Report says state of Iowa's revenue declined over 8% in FY 2025, projects further decline
DES MOINES, Iowa -- A recent report released by the Legislative Services Agency shows that revenues for the state of Iowa declined by over 8% last fiscal year and are expected to decline again this fiscal year. According to the non-partisan agency's report released last week, final net revenues for the state in FY 2024 totaled $9.7 billion, while net revenues totaled $8.9 billion in FY 2025, an 8.4% decline. Several things likely impacted the de…
Coverage Details
Total News Sources14
Leaning Left3Leaning Right0Center5Last UpdatedBias Distribution62% Center
Bias Distribution
- 62% of the sources are Center
62% Center
L 38%
C 62%
Factuality
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