A state budget panel estimates Iowa will collect about $34 million more in taxes than previously expected for the current budget year.
The three member Revenue Estimating Conference announced Monday that a slow but steady rebound of Iowa's economy also would mean an extra $85 million in taxes for the next budget year, which begins in July.
Legislative leaders welcomed the news but noted the state still faces budget problems because federal stimulus money wouldn't be available for the next budget.
Incoming House Speaker Kraig Paulsen says the projection means
it will be a bit easier for Republicans to meet their promise to reduce property taxes.