Everyone thinks that 2010 was the most difficult budget year f or the State of Iowa, but, 2010 may pale in comparison to what awaits Iowa lawmakers in 2011.

According to a report in the Des Moines Register, Iowa lawmakers closed the 2010 budget gap of  more than $800 million  by utilizing one-time sources of revenue.  Not only that, but all of the federal stimulus money is gone.

“Over the two years, nearly 60 percent of the money from one-time revenue sources has come from federal stimulus legislation. The rest is from the state’s cash reserves, called the rainy-day fund, and from state funds designated for other purposes.”

Des Moines Register, April 5,  2010

So how will we close the budget gap and keep the State of Iowa in the black?

We believe that Iowa lawmakers will need to look at both spending and taxes as the means to achieve a balanced budget. Of course, the big question when will revenues begin to increase as the primary indicator of an economic turnaround.

Capitol Consultants is a leading government relations and grassroots lobbying firm headquartered in Iowa.  For more information,  contact them at:   info@ialobbyist.com or visit:  www.ialobbyist.com

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