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Iowa House Leader Says More Budget Cuts Loom

October 29, 2009, 2:22 PM

Attention has been focused on Governor Chet Culver's plans to cut $565 million from the state's budget, but legislators say they'll probably have to make an equally large cut to the following year's budget.

House Majority Leader Kevin McCarthy on Thursday speculated there would be at least a $500 million shortfall in the fiscal year beginning July 1.

McCarthy says the reality is that officials will have to cut more due to a slow economy that has caused tax revenue to plunge. Although the national recession could be over, Sen. Bob Dvorsky, who heads the Senate Appropriations Committee, says Iowa typically lags behind national economic trends and could face problems even while other states see improvements.

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