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WEBVTT AND LAYOFFS.>> WE ARE FACING A DIFFICULTTIME.STATE REVENUES ARE STILLEXPERIENCING GROWTH, JUST SLOWGROWTH. CYNTHIA: THE IOWANS WHO STUDYTHREE THE STATE'S BALANCE SHEETSGAVE THE GRIM NEWS THAT TAXREVENUES COMING INTO THESTATEHOUSE ARE LESS THANEXPECTED.>> RURAL IOWA IS STILLSTRUGGLING FROM THE FARMECONOMY.>> CORN, SOYBEANS, BEEF POULTRYARE BEING PRODUCED AT A LOSS ORBREAK EVEN. CYNTHI THAT HAS LED TO A DROIN MANUFACTURING.IT MEANS IOWANS ARE NOT OUTSPENDING MONEY LEADING TO ADECLINE IN THE SALES TAX>> WITH THE BANKRUPCIES ANDCLOSING OF STORES, PEOPLE ARENOT SUPPORTING RETAIL THROUGHOUTTHE MIDWEST.CYNTHIA: DEMOCRATS SAY GIVINGAWAY A HALF BILLIO DOLLARS AYEAR IN TAX CREDITS HAVE WRECKEDTHE STATE BUDGET.>> WE HAVE A SPENDING PROBLEM,WE'RE GIVING AWAY TAX CREDITS TOLARGE CORPORATIONS, ANDWE ARE UNDERFUNDING EDUCATION INTHE STATE AND OTHER PROGRAMSVITAL TO IOWA. CYNTHI GOVERNOR TERRY BRANSTADSAYS IT'S TIME TO TAP INTO ARAINY DAY FUND, SAYING IOWA HASHUNDREDS OF MILLIONS IN THESTATE SAVINGS ACCOUNWE PROPOSE USING OUR SAVINGS INTHE CASH RESERVES, RATHER THANADDITIONAL BUDGET CUTS.WITH JUST OVER 3 MONTHSREMAINING IN THE CURRENT FISCALYEAR, ADDITIONAL CUTS ARE NOTFEASIBLE.WE ARE COMMITTED TO REIMBURSINGTHE CASH RESERVE ACCOUNT IN THEBUDGETS TO BE PASSED THISSESSION."HOUSE REPUBLICANS SAY THEY'LLTAKE A HARD LOOK AT WHERETAXPAYER MONEY IS USED>> WE ALSO HAVE TO LOOK AT THETAX CREDIT SIDE OF IT AS WELLAND MAKE SURE WE'RE BEINGSERIOUS ABOUT LOOKING ATEVERYTHING.

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Lawmakers learned Tuesday that they must find an additional $131 million before June 30 as tax revenue for Iowa drops for the third time since last fall. The Revenue Estimating Conference said the state is taking in fewer sales tax and income tax revenue than expected, and that Iowa must cut another $191 million from next year's budget beginning in July. The three Iowans who study the state's balance sheets gave the grim news that tax revenues coming into the statehouse are less than expected. "Rural Iowa is still struggling from the effects of the difficult farm economy,” said Holly Lyons, of the Revenue Estimating Conference. "Corn, soybeans, pork, beef and poultry are being produced at a loss or close to break even,” said David Roederer, of the Iowa Department of Management. David Underwood, of the Revenue Estimating Conference, said the drop in manufacturing is preventing Iowans from spending money and causing a decline in state sales tax. “With the bankruptcies and closing of stores and all this is that people just are not supporting retail throughout the Midwest,” Underwood said. Rep. John Forbes, D-Urbandale, said giving away a half-billion dollars a year in tax credits to large corporations has wrecked the state budget. “We have a spending problem, and the problem is giving away too many tax credits to large corporations,” Forbes said. And we’re underfunding education in the state of Iowa and other programs that are vital for Iowa.” Gov. Terry Branstad released a statement saying he has a plan to prevent more budget cuts and layoffs. “Iowa has hundreds of millions in the state savings account,” Branstad said in the statement. “We propose using our savings in the cash reserves, rather than additional budget cuts. “With just over three months remaining in the current fiscal year, additional cuts are not feasible. We are committed to reimbursing the cash reserve account in the budgets to be passed this session." Rep. Pat Grassley, R-New Hartford, said House Republicans will take a hard look at where taxpayer money is used. “We also have to look at the tax credit side of it as well and make sure (we are) really being serious about looking at everything,” Grassley said. “So when I say ‘everything is on the table’ I think that through legislation we’ve passed plus the work we’ve put into the budget, I think that everything is on the table." With revenue estimates down $191 million for 2018, lawmakers said they expect to deal with more belt tightening and budget cuts into the next fiscal year.