What is the Revenue Estimating Conference?
State general fund revenue estimates are generated by the Iowa Revenue Estimating Conference (REC). The REC was established in Iowa Code 8.22A as a way to arrive at consensus General Fund revenue estimates to be used by both the Governor and Legislature for the budget process. Membership is comprised of the Governor or the Governor’s designee, the Director of the Legislative Services Agency, and a third person agreed upon by the other two members.
The current membership of the REC is:
- Michael Bousselot, Governor's Designee;
- Holly Lyons, Fiscal Division Director of the Legislative Services Agency; and
- David Underwood, retired CFO and Treasurer, AADG, Inc. in Mason City, Iowa.
The REC is responsible for providing periodic estimates of General Fund revenues available for the budgeting process. The estimate is composed of several pieces, including:
- Cash tax receipts for July 1 through June 30,
- Other receipts to the General Fund for July 1 through June 30,
- Lottery transfers and other transfers to the General Fund for July 1 through June 30,
- Accruals of tax receipts, other receipts, and transfer revenues associated with the fiscal year hold open period after June 30,
- Refunds paid from fiscal year receipts, and
- School Infrastructure Transfers from fiscal year receipts.
The combination of these projections provides the estimate of total net General Fund revenues available during the fiscal year. The REC meets periodically, generally in October, December, and March/April. The REC must meet on or before December 15 of each year and once during the regular session of the Legislature. At the December meeting, the REC establishes the net General Fund estimate that is to be used by both the Governor in developing budget recommendations to the Legislature and by the Legislature in developing the State’s budget.
If the REC in their meeting during the Legislative session raises the net General Fund revenue estimate for the subsequent fiscal year, the Governor and Legislature are to use the lower amount estimated in December. If the REC during this meeting lowers the net General Fund revenue estimate for the subsequent fiscal year, than the Governor and Legislature are to use the lower amount. The Governor has 14 days from the time of the REC meeting to submit to Legislature revised budget recommendations using the lower revenue estimate.
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Revenue Estimating Conference