State treasurer questions legality of planned budget fix

Governor Kim Reynolds’ plan to transfer $13 million from the Iowa Economic Emergency Fund to balance the fiscal year 2017 budget “would not be in compliance with Iowa law,” according to a letter State Treasurer Michael Fitzgerald sent to the governor today.

If his interpretation is correct, then a special legislative session will be required to cover the year-end shortfall. Reynolds’ staff dismissed and mocked Fitzgerald’s concerns.

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How did Kim Reynolds crunch the numbers to avoid a special session?

Governor Kim Reynolds won’t call a special legislative session to balance the budget for the year that ended on June 30, her office announced this morning.

They haven’t explained how a fiscal year 2017 shortfall that non-partisan analysts estimated at $104 million in July and around $75 million a few weeks ago became a $14.6 million shortfall, according to the governor’s staff.

Reynolds didn’t take questions from the press today. She didn’t even attend the briefing where Department of Management Director Dave Roederer handed out a puzzling table.

Whatever the Reynolds administration did to avert a short-term political problem will likely worsen the strain on the state budget in the coming months.

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