State Budget Shortfall for Fiscal Year 2014

DES MOINES, Iowa — State Auditor Mary Mosiman says Gov. Terry Branstad plans to spend more than the state takes in this fiscal year.

The 2014 budget year that began on July 1st includes $7.4 billion in spending. At the same time the state is only projected to take in $7.23 billion.

In order to balance the budget, Gov. Branstad will use $171 million in emergency funds. The governor says the emergency funding is needed in part because of a drop in farm revenue.

“Farm income is not what it has been, we had some robust years of farm income and now we have corn selling for $3.60 a bushel as opposed to a few years ago when it was $7 and $8,” says Branstad.

The state auditor also say the following fiscal year budget, for 2015,  underfunds Medicare by $53 million.

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