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Report says state of Iowa's revenue declined over 8% in FY 2025, projects further decline

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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Center

Iowa state revenue fell 8.1% in fiscal year 2025, nonpartisan agency report finds

The state of Iowa’s general fund revenue for fiscal year 2025 is roughly $200 million less than predicted when state lawmakers were moving forward with the budget, according to a Legislative Services Agency report.

9 days ago

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WEAREIOWA

Center

State Auditor Rob Sand warns of Iowa’s 'deepening budget crisis'

Auditor Rob Sand highlighted an $816.6M drop in Iowa's FY 2025 revenue, citing a looming $1B deficit by FY 2026 and reduced nonfarm employment share.

10 days ago

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WHO-DT

Center

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…

10 days ago

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