BUDGET OPINION: Vaudt Reviews State’s Finances
Iowa’s auditor released his assessment of the budget for the year ahead Monday morning.
David Vaudt says lawmakers are doing a better job of spending what the state can afford, but he worries about the uncertainty caused by the nearly $16 trillion federal debt.
“If the Federal tax code remains unchanged, Iowa will feel the impact of expired Federal income tax cuts and other scheduled policy changes, collectively referred to by the media as the ‘fiscal cliff.’ As the Federal government addresses its fiscal imbalance, Iowa can expect a decline in Federal support,” says Vaudt.
Iowa spends about $6 billion a year, along with the nearly $6 billion it gets from the federal government.
Vaudt thinks lawmakers should prepare for fewer federal dollars once Congress starts cutting spending.