The state faces another budget shortfall for fiscal year 2017

With two weeks left in the state fiscal year, Gov. Kim Reynolds announced Tuesday that Iowa will borrow up to $50 million from the Economic Emergency Fund to head off another shortfall for the current fiscal year. According to the Legislative Services Agency (LSA), state revenues for the last 11 months have fallen about $97 million short of projections.

The Revenue Estimating Conference (REC) had projected 2.8 percent growth for the current fiscal year, but revenue has only been growing at 1.2 perecent. The governor has said she and her staff are continuing to monitor the situation. She also said there will not be across the board budget cuts and hopes to avoid having to call for a special legislative session to address further cuts. Read more from The Des Moines Register.