The State of Iowa has from now until July 1st to cover a $131 million shortfall, in order to meet the current year’s budget limit, and the governor is taking the advice one local senator gave him months ago. State Senator Rich Taylor (D) argued earlier in the legislative session that the state should dip into its rainy day funds in order to cover the budget shortfall, which would prevent funding cuts from programs. Now that the budget has come up with an additional shortfall on the original estimate, the governor appears willing to heed Taylor’s advice and go to the emergency funds.
Taylor realizes it may not be the most popular way to solve the state’s current budget problems, but he’s confident it’s the right way, “It’s kind of a touchy subject. A lot of people don’t want to use the rainy day fund. But I kind of compare that to, if I have a car wreck and my insurance doesn’t cover my expenses for replacing my car, I’m going to go to my savings account. And that’s what I think Iowa should do, is go to their savings account.” Looking ahead to next year and additional possible shortfalls, Taylor says that should be tackled by taking a closer look at the “tax welfare” or tax credits the state is giving corporations. To hear more about the current legislative session, listen to the two-part In Touch with Southeast Iowa interview with Taylor at KCIIRadio.com.