Gov. Chet Culver said last week he believes Iowa is in good shape to weather the current fiscal crisis even as the state recovers from devastating floods and tornadoes that struck earlier this year and caused as much as $8 billion in damage.
He noted that Iowa retains its high credit marks and has roughly $640 million in budget reserves. Although he believes the state will manage through the crisis, the governor did convene his council of economic advisers late last week to discuss its impact on the state economy.
Iowa’s farm economy also continues to flourish due to high prices for commodities. The state’s bio-economy is also growing and job creation is strong. Unemployment is 4.6%, far lower than the national average of more than 6%.
“The good news is that in Iowa, our fiscal house is in order, so going into this challenging national economic situation, Iowa is actually much better positioned than most states,” Culver said in a recent speech.