The Iowa Revenue Estimating Conference last week revised the state’s revenue forecast downward by about $400 million in the current and next fiscal years.
About $130 million of the shortfall is due to falling revenues in the current fiscal year that runs through June 3 and the remainder is due to revised projections for the next fiscal year.
The latest estimates affect the $6.23 billion budget proposal for fiscal 2010 from Gov. Chet Culver, who now is expected to submit a revised plan. State officials said federal stimulus funds could possibly offset some of the shortfall, with additional cuts likely.
The Legislature’s Democratic leaders said they would not turn to tax increases to cover the new deficit.
