The response from state officials was mixed following yesterday’s (Thursday) release of the Iowa Revenue Estimating Conference’s (REC) updated projections that revised Fiscal Year (FY) 2026 tax revenues down by eight percent. Gov. Kim Reynolds contends that collecting more tax dollars than necessary does not benefit anyone, and the decrease in the revenue estimate was expected. Currently, the state’s projected General Fund balance for FY26 is estimated at $1.88 billion, and the Taxpayer Relief Fund has a balance of more than $4 billion. Reynolds says, “The REC’s adjustment to its March projections is based primarily on passage of President Trump’s historic tax cuts in July, which will save Iowans an additional $3,000 a year on average. Iowa’s strong fiscal health is due to a strong commitment to fiscal conservatism by my administration and legislative leadership, and we will continue to be good stewards of taxpayer dollars.” Iowa State Auditor Rob Sand argues that the updated figures represent a continuation of an ongoing trend that signals future budgetary challenges. Sand says, “This news confirms what I’ve been saying for years – our state budget has been run into the ground, and the surplus, provided largely from federal funds, will only steady us for a short time. These are irresponsible choices made by politicians who want to advance their careers rather than balance our budget.” Sand is currently the frontrunner for the Iowa Democratic Party in the 2026 gubernatorial primaries, while Reynolds, a Republican, has decided not to run for re-election.