The state of Iowa ended fiscal year 2021 with the largest surplus ever recorded: nearly $1.24 billion. That’s four times higher than the general fund’s ending balance of $305 million when the books closed on the previous fiscal year, and it doesn’t include an estimated $801 million in Iowa’s cash reserves and economic emergency funds.
Governor Kim Reynolds declared in a news release, “Iowa is in a very strong financial position due to our fiscal responsibility.” Her staffer Joel Anderson, who is temporarily running the state’s budget agency, commended the governor “on recognizing the importance and need for a healthy and strong balanced budget.”
But an enormous surplus is not a sign of a healthy budget or responsible decisions. On the contrary, it suggests state government should have spent more on the public services Iowans need.
Continue Reading...