DES MOINES, Iowa (AP) — A nonpartisan group that reviews Iowa’s finances has estimated a shortfall of about $37 million in the current $7.2 billion state budget. The Legislative Services Agency provided the data in a report this week. The agency adds that the next state budget, set to go into effect in July, has an expected shortfall of about $65 million. That’s due to built-in increases like plans to return money to Iowa’s emergency reserves, which helped plug previous budget shortfalls.

Republican Gov. Kim Reynolds will release budget recommendations in January that are expected to address any shortfalls. Her budget director previously said cuts to government departments were possible. Lawmakers must approve any proposals. An LSA analyst says their figures could change as additional accounting comes into play, including the new federal tax overhaul.