Gov. Reynolds issues statement on December REC projections

Today, Governor Kim Reynolds released the following statement in response to December REC projections for Fiscal Years 2026 and 2027:

"The December REC projections, a slight increase from the October projections, are a direct reflection of the fiscally conservative agenda we've put into practice-returning tax dollars to Iowans coupled with responsible spending centered on growth. The State of Iowa ended Fiscal Year 2025 with a $1.9 billion ending balance and reserve funds full. As of this year, Iowans are pocketing more of their hard-earned money by paying a low 3.8% flat tax on their income. This has resulted in less tax revenue, just as we anticipated and prepared for by building the state's Taxpayer Relief Fund to more than $4B.

While some uncertainty remains in the international trade landscape, recent soybean purchases from China and USDA assistance for farmers will benefit Iowa's agriculture economy. As we prepare for this legislative session, my focus remains on working with the legislature to maintain fiscal discipline and reduce property taxes for Iowans."