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Iowa Budget Gap Could Reach $1 Billion

November 26, 2009, 9:17 AM

Iowa will face a budget gap of more than $1 billion next year, the largest gap in state history.

A budget review from the Legislative Services Agency predicts lawmakers will face a projected shortfall of $1.07 billion in the fiscal year beginning July 1.

The state has coped with the projected gap by ordering a 10 percent across-the-board cut in spending and proposing layoffs.

But the new estimate is worse than previous shortfalls, and Iowa House Majority Leader Kevin McCarthy says the state will likely eliminate entire programs.

The state's Revenue Estimating Committee will meet on December 11. Its report will dictate how much Gov. Chet Culver can spend in the next budget year.

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