Last week Iowa Governor Terry Branstad signed off on a $118 million budget reduction for the current fiscal year. The bill reduces the current year's budget in order to accommodate a $100 million shortfall of expected state revenue.
Budget reductions include:
- $4.5 million from k-12 education
- $3 million from community colleges
- $18 million from public universities
- $3 million from judicial
- $5.5 million from corrections
- Several million from economic development, transportation and revenue
Through this budget planning, the legislature is taking steps to simplify the income tax code and Governor Branstad is proposing a revenue-neutral approach - both of which we applaud. While the Chamber recognizes the need to amend the budget shortfall, we also urge our legislators to ensure that agencies have adequate resources to carry out their duties.
Please contact your legislators and leaders and ask them to support the Governor's proposal for a revenue-neutral income tax simplification.
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