Gov. Kim Reynolds says new revenue projections show Iowa’s budget remains strong heading into the next fiscal year. The Revenue Estimating Conference released its December forecast for fiscal years 2026 and 2027, showing a slight increase from the October projections.
Reynolds said the numbers reflect the state’s fiscally conservative approach, noting Iowa ended fiscal year 2025 with a $1.9 billion ending balance and full reserve funds. She cited the state’s 3.8% flat income tax rate, which took effect this year, saying lower tax collections were expected and planned for through the Taxpayer Relief Fund, which now totals more than $4 billion.
Reynolds also pointed to recent soybean purchases from China and new USDA assistance as positive signs for the state’s agricultural economy. As lawmakers prepare for the upcoming session, the governor said her priorities include maintaining fiscal discipline and reducing property taxes.
A link to Gov. Reynolds’ full press release can be found here.
