IOWA – Tax revenue in the state of Iowa is expected to drop by more than $1.1 billion by the end of fiscal year 2026, according to the October meeting of the state’s Revenue Estimating Conference. The Des Moines Register reports the result is tied to a 3.8% flat tax law signed by Governor Kim Reynolds this past spring. Reynolds claims the state’s fiscal state is still strong. Director of the Iowa Department of Management Kraig Paulsen cites a $1.9 billion surplus and $3.75 billion in the state’s Taxpayer Relief Fund as to why he believes there are no risks short term to state spending.

DES MOINES – Iowa’s seasonally adjusted unemployment rate remained at 2.9 percent in September amid a labor force that remained largely static despite job reductions. The state’s labor force participation rate held steady at 66.3 percent. The U.S. unemployment rate decreased to 4.1 percent in September. The number of unemployed Iowans increased to 49,400 in September from 48,400 in August.