Branstad sticking by choice to use rainy day funds

DES MOINES - Gov. Terry Branstad is defending his decision to use reserve funds to make up for a shortfall in the state's tax revenue estimate.

Branstad said the state isn't in an economic crisis because of the $113 million shortfall, and that this will just be a time to look at the agriculture economy in Iowa.

"It's not an economic emergency because the state of Iowa has 3.3 percent unemployment and we've had significant economic success," said Branstad during his weekly press conference. "But we have been hurt because of depressed farm prices. But this is not a farm crisis period."

Using "rainy day" funds to make up for the revenue estimate means that lawmakers won't have to cut millions more to state departments.

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