Iowa expects to close out fiscal 2011 with an ending balance and reserves of $914 million, according to a memorandum budget director Richard Oshlo sent to Gov. Chet Culver that was released last week.
The state previously estimated combined reserves of $616.6 million. It now expects its ending balance will be $480 million, up from an earlier projection of $183 million, and its rainy-day fund holds $434 million. Iowa held its revenue estimating committee last month. The state’s fiscal year ends in June.
Culver this week announced that state revenues are up by $83.3 million for July through September over the same period last year.
Gross tax receipts are rising by about 4.1%, from a budgeted estimate of 3.3%.
“It is no surprise that our state economy continues to improve,” the Republican governor said. “It is just another sign that Iowa has weathered the greatest economic downturn since the Great Depression.”
The state is operating on a $5.28 billion budget for fiscal 2011.