Gov. Reynolds Takes $13 Million from ‘Rainy Day’ Fund to Cover Budget Shortfall

DES MOINES, Iowa -- Iowa’s governor has decided not to call lawmakers back into a special session to deal with a shortfall from last year’s budget.

Gov. Kim Reynolds will instead transfer an additional $13 million from state reserves. That’s on top of about $249 million in previous cuts and borrowing from the state reserves.

Reynolds’ budget chief announced Wednesday, a combination of factors led to a lower end of year deficit.

That included higher state collections because workers paid more taxes since many got paid an additional paycheck in June.

Democratic candidate for governor, State Senator Nate Boulton, issued a statement following the announcement of Gov. Reynolds' plans.

In it Boulton said, “Once again, Iowans are left wondering how Kim Reynolds will balance the budget after she has over extended our state with almost $600 million in annual giveaways to huge corporations. It’s a gamble that isn’t working to increase wages and is ruining state finances. Her previous attempts to fill the holes in our budget have been on the backs of hardworking Iowans, by cutting overtime pay for overtime work, gutting collective bargaining rights, and underfunding our education system."

Republican Speaker of the House Linda Upmeyer praised Reynolds' decision in a statement released Wednesday.

“Governor Reynolds’ diligent and thoughtful approach was the right decision.  While others were reactionary, she demonstrated the steady leadership Iowans expect.  House Republicans will continue to fight off unsustainable spending schemes proposed by Democrats and will work with Governor Reynolds to keep Iowa moving forward.”