IOWA -- One of the top elected Democrats in Iowa says Governor Kim Reynolds may have broken state law when she paid off a budget shortfall last week.
Reynolds used $11 million in emergency funds to pay off the state's debt. Had the bill been more than $50 million, she would have needed to call a special session. However, State Treasurer Michael Fitzgerald says the debt Reynolds paid off was too small for her to use emergency funds.
State law says a governor can only transfer money like Reynolds did if actual revenue is half of a percent less than the previous revenue estimate. In this case, Fitzgerald says, the shortfall was only 0.15% which is not enough to call for a transfer of money.
The governor's office challenges that math and says the shortfall was actually 1.5% less than estimated, making her transfer legal.