State Treasurer Questions Legality of Governor Reynolds’ Money Transfer

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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.

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