Gov. to Unveil Plan for Cutting Iowa Budget

(AP Photo/Charlie Neibergall)

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By Becky Ogann

Story Created: Oct 28, 2009 at 10:03 AM CST

Story Updated: Oct 28, 2009 at 10:03 AM CST

DES MOINES (AP) - Gov. Chet Culver is unveiling his plans for a 10 percent across-the board budget cut, slashing $565 million in spending and forcing hundreds of layoffs.

Culver is to announce his decision Wednesday afternoon.

Preliminary plans from departments and agencies earlier this month put nearly 800 jobs on the line. With the elimination of vacant jobs, Iowa faces a total loss of over 1,300 positions.

Culver's order came after a panel of budget forecasters cut nearly $415 million from its projection of how much the state will collect in taxes in the current fiscal year. That's a 7.1 percent reduction from its projection in March, a figure on which the state's budget was predicted.

Culver ordered deeper cuts to guard against more bad economic news and to give the budget the ending balance it needs for cash-flow purposes.

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