(KCAU) — Iowa’s tax revenue projecting committee offered up some encouraging news Monday.

It is predicted that state revenue will increase by about 3% for the current fiscal year and 1.7% next year.

Iowa and many other states experienced a boost from federal Covid-19 aid, fueling an increase in consumer spending, tax collections, and state revenue.

Budget experts now say Iowa is likely to have more than 2 billion dollars in excess revenue that the state has not committed to spending.

Gov. Kim Reynolds and Republican legislative leaders say they plan to propose significant tax cuts for 2023 and beyond.