Governor Reynolds Facing Lawsuit Over Transfer of Emergency Funds

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IOWA  --  Earlier this fiscal year, Governor Reynolds avoided a special session and tapped the state's emergency fund to cover a $13 million budget shortfall.

Now, Sioux City Representative Chris Hall says the transfer was illegal. He is suing both Governor Reynolds and Iowa's Department of Management director.

Hall says the transfer was illegal because under state law it's only allowed when revenues are 0.5% below predictions. State Treasurer Michael Fitzgerald says the difference was only 0.15% when the transfer was made.

The governor's office called the action a political lawsuit motivated by politics.

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