Farm slowdown pushes Iowa tax revenue $49.3 million lower

In this Wednesday, Sept. 23, 2015, photo, central Illinois farmers deposit harvested corn on the ground outside a full grain elevator. (AP Photo/Seth Perlman)
In this Wednesday, Sept. 23, 2015, photo, central Illinois farmers deposit harvested corn on the ground outside a full grain elevator. (AP Photo/Seth Perlman)

DES MOINES, Iowa (AP) – A panel of state budget experts has lowered Iowa revenue projections for the current fiscal year, though there are no immediate plans to cut spending.

Citing a slowdown in agricultural income and economic uncertainty from a divisive presidential race, interest rates and international trade the Revenue Estimating Conference Thursday predicted the state will take in about $49.3 million less than anticipated in March.

The new revenue estimate, based mostly on individual, business and sales tax receipts, is $7.31 billion for the fiscal year that began July 1. That’s still a 5.6 percent increase from the previous year.

The three-member group estimated next year’s revenue will grow 4.1 percent to $7.61 billion.

The group updates the estimates again in December and those figures are the basis for next year’s state budget.

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