Analysts: Iowa faces $131M shortfall for current budget

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DES MOINES, Iowa (AP) - Financial analysts say Iowa is taking in less-than-expected revenue and must address a new shortfall of about $131 million for its current budget.

The three-member Revenue Estimating Conference announced Tuesday that Iowa was expected to take in about $7.1 billion for the current budget year, which ends June 30. It's the third time the revenue forecast has been cut since last fall.

Gov. Terry Branstad's spokesman says the state should offset the deficit by tapping its cash reserves rather than make additional cuts. Iowa lawmakers have already cut more than $117 million from the current budget to address an earlier shortfall.

Analysts didn't point to one reason behind the revenue decline. They predicted Iowa also must cut about $191 million from the budget year beginning in July.