Iowa Faces Hole in Budget

DES MOINES (AP) - State budget experts say tax collections are dropping just as the demand for public services is growing.

The state is facing more than a $500 million hole in the budget and the situation could get worse.

On
Tuesday, Gov. Chet Culver wouldn't rule out mid-year budget cuts but
wanted to wait until December for an updated forecast of the economy
and budget.

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