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IOWA  --  The state of Iowa is facing increasing financial troubles.

During the past fiscal ear, Iowa made $118 million in mid-year cuts and borrowed $131 million from reserves in order to balance the budget.

Now, the Iowa Lottery is reporting a $7 million drop in revenue compared to last year.

Governor Kim Reynolds could be forced to call a special session if the budget still isn't balanced after all revenues and expenses are finalized in September.