REC Meeting Key Component of Budget Process
The Revenue Estimating Conference (REC) meets at least three times a year and is a key component of the budgetary process in Iowa. The REC is tasked with agreeing upon budget estimates for the current fiscal year for the State of Iowa. Recent REC reports have indicated that revenue in Iowa is up and many involved in the budget process expect this week's REC report will illustrate the same.
The three-member Conference was established by Iowa Code and is comprised of the Governor or the Governor's designee, the Director of the Legislative Services Agency or their designee, and a third member agreed upon by the other two members. The Code directs the Governor to use the December REC estimate in establishing his budget. If the REC March estimate is less than the December estimate, the Governor and Legislature are required to use the lower estimate in budget creation. However, if the March estimate is higher or the same as the December estimate, the law requires the Governor and General Assembly to use the original December estimate.
The anticipated positive revenue estimate will be welcome news for those who love big government. The Senate Democrat's budget currently spends roughly $500 million more than the House Republicans and over $200 million above what the state takes in. But reckless fiscal behavior pushes the state down the road of fiscal uncertainty through out-of-control spending and lack of budgetary restraint. We must work to meet the needs of Iowans while adhering to sound budgetary principles of spending within one's means so future generations are not burdened with our mistakes.
Please feel free to contact me at 641-295-6551.