State revenue growth less than expected

Iowa’s 2016 fiscal year tax collections came to a close $42.4 million below estimates. During the year-long period ending June 30, State revenue grew only 1.6 percent versus the Revenue Estimating Conference’s (REC’s) March projection of 2.2 percent. The lower revenues are due in part to the downturn in the farm economy and lower than expected personal income tax collections and withholdings. Final figures won’t be available until fiscal 2016 accruals and reversions are tabulated this fall, so the numbers may still move closer to the 2.2 percent growth estimate.