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Overview of the Budget
• The Governor is proposing a general fund budget of $6.2 billion, with an ending balance of $75.7 million. The FY 2010 budget represents an increase of $115.2 million over the adjusted FY 2009 budget. The general fund budget grows over FY 2009 because the Governor recommends mov-ing $203.7 million in spending into the general fund that was previously funded from other funds outside the general fund. He is doing this to improve budget transparency. However, if you ad-just for the shifts in spending growth, his budget is actually $88.5 million less (or 1.4% less) than in FY 2009.
- ANALYSIS OF BUDGETS:
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- LSA Preliminary Summary of Governor’s Budget Recommendations New!
- Analysis of the FY 2010 Budget and Department Requests
•The Governor builds this budget with no tax increases and by imposing a 6.5% reduction to 207 of the 253 line items in the state budget.
• Certain key areas of the budget are protected from the effects of the 6.5% reductions. These in-clude such areas as disaster relief funding, public safety, prison guards, workforce development, human services, victim compensation funds, the teacher quality program, and preschool funding.
• Preliminary figures showed a $680 million gap between the current revenue estimate for FY 2010 and estimates of built-in and anticipated spending increases. The Governor recommends closing this gap by continuing $180 million in reductions that were made in FY 2009; implementing 6.5% reductions to most of the budget for FY 2010, which saves approximately $400 million; and using $200 million from the state’s cash reserve fund.
• The Governor plans to save $20 million in FY 2010 through government reorganizations and ef-ficiencies.
• This is a collective bargaining year for state employees and even though a settlement has not been reached, the Governor is not building an increase in the budget for funding the contracts.
• In an effort to improve budget transparency, the Governor reduces the amount of operating ex-penses funded off-budget and brings them back to the general fund. The Governor proposes the following $203.7 million in transfers to the general fund:
- o $95 million of expenditure from the Senior Living Trust Fund.
- o $33.7 million of programs previously funding from the Healthy Iowans Tobacco Trust Fund.
- o $3.2 million of grants funded from the Victims Compensation Fund.
- o $900,000 of expenditures from the Attorney General’s Forfeiture Fund.
- o $61.8 million in expenditures from the Property Tax Credit Fund.
- o $6.5 million in expenditures from the Gamblers Treatment Fund.
- o $2.6 million in expenditures from the Child Care Tax Credit.
• The Governor is proposing a $700 million Rebuild Iowa Infrastructure Investment bonding pro-gram, which will tie into the Federal Stimulus effort to spur economy and create jobs. These funds will go for real bricks and mortar projects such as housing, highways and bridges, sanitary sewer systems, storm sewers, water towers , mass transit, trails, flood rebuilding, and energy in-frastructure.
• The Governor’s budget for FY 2010 will show $247.9 million in revenue adjustments, most of which is the transfer of $200 million from the cash reserve fund to the general fund. The other adjustments are as follows:
- o $800,000 in Innovations Fund payments.
- o $15 million by capping tax credits at $200 million.
- o $13 million by capping the Research and Activities Tax Credit.
- o $2.6 million by eliminating the diversion of the Child Care Tax Credit, this is the revenue side of the appropriation that was off budget.
- o $6.5 million in transfers from the Gamblers Treatment Fund, this is the revenue side of the appropriation that was off budget.
- o $10 million by sweeping the remaining balance from the last Federal Economic Stimulus and Jobs Holding Fund from the last recession.
Recommended Changes to FY 2009
• The Governor is recommending $63 million in additional spending to backfill and meet shortfalls in the budget. The Governor is also proposing $56 million be expended from the Economic Emergency Fund to provide additional funds for disaster assistance. (This is consistent with the $56 million appropriated by House File 64.) The Governor is also proposing $30.8 million in se-lective reductions or de-appropriations, to help keep the FY 2009 budget balanced. (These are part of the $77 million in reductions the Governor proposed back in December.)
• The supplemental appropriations recommended are as follows:
- o $47 million for the Department of Human Services for Medicaid.
- o $6 million to the Department of Natural Resources for flood disaster relief.
- o $992,915 to the Department of Public Health for flood costs to replace vaccines.
- o $5.6 million to backfill funding to the Department of Corrections.
- o $1.4 million to backfill funding to the Department of Public Safety.
- o $312,604 to backfill funding for Iowa Workforce Development.
- o $2 million to fund the Rebuild Iowa Office.
• The Governor proposes shifting $66 million in funds from other funds into the general fund, to help maintain the general fund balance. The funds shifted are as follows:
- o $18 million from the Tobacco Master Settlement Agreement payment.
- o $4.5 million from the Innovations Fund.
- o $800,000 from the Local Government Innovations Fund.
- o $5.7 million from the Underground Storage Tank Fund.
- o $37 million from the Rebuild Iowa Infrastructure Fund. (Funds that had been committed to the new state office building.)
Staff Contact: Joe Romano
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I think the State needs to compensate (salary and fringe benefits) employees equal to or slightly above other employers. I don’t think the State should employee a gilt-edge system. I don’t think voter would approve of a compensation system that is vastly above other companies in Iowa.
I also think voters should be able to visit one web site to submit cost reduction ideas. It’s bizarre to visit two sites. Who in the world thought of that system? He must be a real practical State employee.
Perhaps the state should take a look at having workers pick up some of their health insurance premimum costs. Single contracts and the HMO products for families are currently all paid by the state. 99.9% of all other employers have their employees share in the cost. The days of anyone having free health insurance is gone. I am not sure how much could be saved but my boyfriend currently has a Afscme Iowa select. Per the DAS website the monthly cost is 640.92 paid by the state. We also need to trim the fat from medicaid and hawk-i programs. I wonder how many parents qualify for good coverage for their children but instead use these programs because they are cheaper? Also freeze raises and pay for a few years.
1. Raise the 5 cent deposit to 10 cents and expand it to sports drinks, water bottles and any other refereshment with a screw on lid. I’m amazed how many are still being thrown out car windows.
2. Enact a 3 cent fee for every plastic sack taken from any retail outlet. One cent can go to the DNR, one to the retailer, and one to the general fund. This wouuld be “voluntary” as people could reuse their plastic sacks or carry cloth bags as I have for 20 years.
3. Cut down on the spraying and mowing of the state’s highways, especially the spraying of herbicides. It can not be good for the environment and we pay double as in the purchase of the chemicals and then for the applicaton. Any employee affected could be redirected to the repair of our current raids and parks.
Offer early retirement to state workers who are three years or less from retirement. Early retirement would be a less financial hardship than putting younger workers, who are trying to support young families, on furlough
Can’t we take a closer look at what the state pays out in welfare? The more kids people have, the more they make off of the state. It’s almost a job for some people…have more kids make more money, but not by working. Can’t we put a cap on how many kids the state will provide for? Some surrounding states have limited the number of kids per family they will help support. Those states are losing their population to states like us that don’t have a cap. So Iowan’s are having to pay more for people that move across the border because their state won’t pay for the extra kids they continue to have. It isn’t right for the working families that try to get ahead, not making much, but according to income restrictions, make too much for any sort of government help. You could almost make more money having more kids and not working.
We do not need to increase teacher salaries again, nor did we last year. Increases in salaries should come when there are shortages in a certain profession – however, we have a wealth of available teachers and 50+ apply for any single open job in the state! And, teachers pay NO health insurance premiums! Require teachers and state employees to pay more health insurance premiums, even if it is just 10%, it will easily solve the budget problem!
How about requiring receipts from state employees for meals [e.g., when they are on the road]? At this point, they can claim the maximum amount allowed, whether they eat and it costs them less–or they don’t eat at all.
1-Eliminate “lead workers” throughout all departments. Supervisors are paid to provide oversight and should not slough that off to others at an additional cost.
2-Be more fiscally responsible re: meetings, i.e. if all day, hold them at facilities where non-employees can get a meal (to be reimbursed) as opposed to paying a lump sum that includes the cost of a meal for employees. They can take a sack lunch.
3-Eliminate meal reimbursements (B/L/D)for field staff, i.e. not domiciled in Polk County. There is no reason for them to ever get meals if they plan appropriately for simple day trips. Again, they can take a sack lunch.
4-Require the active participation of those making obscene salaries. For example, the State Medical Examiner receives almost $250,000/year and you will note is rarely scheduled to take call.
5-Freeze wages for a full fiscal year (July, 2009 thru’ June, 2010) or at least until overall fiscal health of state determined.
6-Eliminate duplicative and “feel good” programs.
7-Go to a 4/10 workweek. In order to work, the Capitol Complex would need to be shut down either Fri. or Mon. in addition to the weekend – depts. would not be able to arbitrarily choose.
The state could save over $1.2 million dollars by taking away the $50,000 the University of Iowa wants to waste on trying the change their image as a ‘party’ school and take away the $780,000 f in bonus awarded to 64 employees at an average of over $12,000 per person! Outrageous waste of tax payer money.
I have two suggestions to reduce taxes.
1 Reduce the number of counties. We do not ride horses anymore and we don’t need 99 counties.
2 You can save allot of money by getting rid of the Iowa State tax form and just use a percentage of the amount paid to the federal gov. This should allow a reduction in state employees in the tax department and reduce the cost in printing for both tax booklets and forms.
For either FY’09 or FY’10 if every single state employee, from Governor Culver down to the lowest paid employee, could take just a one hour furlough every pay period (every two weeks). That could generate a significant amount of money for both fiscal years.
I think that the state needs to reward departments for not spending their entire budget. We see all kinds of departments spending money in June to try to use the full amount of their budget before the end of the fiscal year. Most people realize that this is done because the departments realize that if their full budget isn’t used then the legislature will look at the next years budget and make cuts to future budgets based on the excess money they recieved this year. This is extra money that could go back into the general fund, and carried forward to these departments for when the state does have budget defecits.
Stop the factories from leaving Iowa. Get rid of the Free Trade ACT start making things in the USA and Iowa again. My understanding the regulations standards aren’t as strict in other countries. They can make faulty products ship them to the US for Free. This is being allowed why? The companies can get slave labor and spend more on luxury items for the CEO’s screw the American people with unsafe unregulated products. These companies are spending billions of dollars in other countries building factories. Giving other countries our jobs therefore taking monies from our economy. They didn’t give us a choice they said we wouldn’t do these jobs anymore so they moved them. This simply is not the case. These companies found using the Free Trade Act they could get cheap labor and send their products back into the USA for Free. Stop buying products from the factories that move them out of Iowa and our country. It would bring more jobs back to Iowa and the rest of the country. The state would get more sells taxes and the people of Iowa would get their jobs back with safer products. They would have money to spend boosting our economy.
Check the prices in local stores before allowing out of state bidders for supplies that are used to kept the state operating. Many times these products are alot cheaper then the lowest bidder system in place, now. Buy local!
Stop allowing gas companies to price fix. One goes up they all go up. It is the $4.00 plus a gallon for gas that broke this economy. If you were making minumun wage it would of took one 8 hour day plus after taxes to fill the gas tank. This didn’t leave much for rent, bills and food. You wonder why there are so many foreclosures the average person can’t afford $4.00 gas except the CEO’s, legislators, professors, college coaches and anyone lucky enough to have been born rich. These companies are showing billions in profits at our expense.
Add a state tax on liquor, wine and beer by $1 a bottle or twelve pack. This would raise millions. While your at it add a $.05 state tax on all candy, pop and fast food sold. Obesity cost the state millions in medical cost a year. Drunk drives kill people. Leave the smokers out of it for a change, all the burden shouldn’t be placed on them to fix the economy.
Why isn’t the ‘Department of Revenue actively collecting Drug Stamp Taxes. 10 years ago less than a full time position brought in over $700,000 in additional revenue. They aren’t even collecting 100,000 now. With more and more drugs on the steet there should be lots of easy money for even the most unambitious revenue agent to collect. Apparently, the collections division administrator and collections manager think that it’s someone elses job and not the tax departments job to collect these taxes. How about it Director of Revenue? Let’s be fair to the taxpayers and collect the drug taxes from these lowlifes that are a plague on us good upstanding taxpayers.
Has anyone looked into the budget surplus that the Board of Educational Examiners is running? They have advertised for two new positions. Perhaps their surplus should go back into the state of Iowa budget….
I would like to see the Human Rights Department cut down on meetings held around the State and out of State. This would cut down on the use of State vehicles and gas. Just because this area is funded by Federal money and is receiving a huge amount through the stimulas package, does not mean it all has to be spent. The money should be used for the people not for them to run up hotel bills, expensive meals, and extra curricular activities after hours.
Offer early retirement packages to state employees and include health care provisions. For many at the top of their pay bracket and who are 55 or older, the health care costs are the only thing keeping them working for the state. If you offered early retirement with some provision for health care costs included, you could hire a new employee at a much lower salary and make up the early retirement package in about 5-7 years!!
Lets cut the salary to High paid coaches and Professors. Then Tell Culver to stop travelling every where ans stay home like the taxpayers have to do.. Turn off the lights on the Capital dome and the Judicial Bldg during the week.
The state should switch to a four, ten hour day, work week. This would save the state money in utility costs and would give clients to the state before and after typical work hours to visit the dept they need without taking time off their job.
Look at using electric cars as the ones shown on this website. http://www.zapworld.com. These vehicles could be used at universities, state parks, by the state patrol and for other uses to replace gas powered autos. The vehicles are less expensive and no gas is needed. Replacing just 100 vehicles in the state fleet would save a huge amount of money!
Outsouce IPERS management. We live in Iowa, there are so many financial services companies around that could manage the IPERS program it is unbelievable and save the state a lot of money. This would also probably increase the service given to the members. Principal, for example, is the nations leading 401k, pension and deferred compensation provider — why does the state employ people to do these tasks when it could be done for free and support local business that puts a ton of money into the economy.
Have the state purchase the Hub Tower in Des Moines… it’s almost empty and could be purchased very inexpensively. Citi, Aviva and other companies have used it so the state could put offices there with very little initial cost. There is now the downtown shuttle to get to and from the Capitol, so the state campus doesn’t need to be right there. Then take the old buildings (Lucas, Hoover…) and sell them to private investors.
Someone needs to pay serious attention to the many millions of dollars that are wasted each year on duplicate technology and processes because agencies are territorial and insist on doing things themselves. With a long term plan to consolidate technology the state could cut technology costs perhaps by as much as half. The technology staff and boards are powerless against the agencies self-serving interests. An example – how many licensing systems are there in the state?
Start a license fee for bicycles.I had to pay a yearly fee when I was young.This tax would also go towards maintaning bike paths. This tax could also go towards the maintenance and creation of more bike paths.
Stop buying bottled water for offices on city water supplies. Cancel newspaper purchases they can be had over the internet for free.
The DOT doesn’t need two drivers license stations in POlk county, close the one on Euclid and stop paying rent on the building.Don’t give free drivers licenses to people that have to wait over 30 minutes, with reduced staff and budget cuts long waits will happen.
There should be a charge of $5 or $10 for a 911 call. Yes this is an emergency phone number but don’t ambulances charge for their services? Charge a minimal amount to help cover the costs of the employees needed for this service. This should also stop or at least slow down the “dumb” calls – such as how long to cook a turkey or for directions.
This is an opportunity for insurance companies also, make a rider for the 911 charge in an accident/health policy.
The point of the stimulus is to stimulate. Don’t negate the stimulus by offseting the stimulus by equal budget cuts. Spend into the recession, cut coming out of recession.
Legalization of marijuana.
Get real, its less harmful than alcohol and tobacco.
Law inforcement, prison systems would save a ton of money.
Allow recipients of IDED funding to pay back loan and labor obligations with a one-time up-front payment.
With approximately 20 casinos in the state, there is no reason for a shortfall. Many individuals have lost nearly all they have. This money must be poorly managed as the revenue is enormous. I have never know how it was spent.
1. Repeal the smoking ban so that small business owners can stay open.This would also bring much needed revenue into the state coffers on several fronts.
Move the Emergency Medical Services section more under the Department of Health and Department of Inspextion and Appeals much longer can teh state waste money on this island of employees with thier own receptionists/secretatries and IT staff aren’t these positions already funded in the department of public health?
Require registration of all farm vehicles and trailers.
Repeal smoking ban. If people want bars were there is no smoking someone will create that niche.
Reduce number of state owned vehicles. Most have more that one seat for a reason.
Extra stiff penalty for state employees or there spouses smoking in state owned vehicles.
Look into third party contractors to mow road sides. I’m sure they can do it cheaper and faster then the guys I see sleeping on the side of the road.
Close the Euclid DOT office. We don’t need 2 stations. Not paying rent for the building & equipment it takes to run the office will save alot. Bring he staff from the Euclid office to the Ankeny office should help with the long lines also.
1. Reduce counties from 99 to 50. Combine county and city governments.
2. Reduce the number of Iowa Schools
3. Eliminate roads in Iowa that are not needed.
First of all, shifting State monitary responsibilities onto the counties is not sound fiscal management nor is it a cut in taxes—it is a shift of the tax burdon to the local taxpayers. The State created its own mess, it needs to take responsibility for the mess.
Home rule needs to be expanded. Give counties flexibility in government instead of over regulation and counties will lead the way in finding entrepreneurs, manufacturers and factories. Local citizens understand best how to be creative and think outside of the box for local problems.
State departments need incentives to make their departments lean and mean. Government will always find a way to spend monies provided it. Incentives have to be provided to be fiscally responsible.
Close the three state universities between Christmas & New Years Day except for non-essential services. Major companies (e.g., Rockwell Collins, Hewlett-Packard) already do this. Quoting a Silicon Valley news source: Stalwarts like Hewlett Packard, Advanced Micro Devices and Cisco are shutting down for extensive Christmas vacations for the first time ever as they try to conserve cash in the face of a global downturn.
Change the pension plan to a defined contribution plan and not a defined benefit like almost every business out there.
Also I understand you want to increase the pay of teachers to increase the quality, but you can not increase the pay like the last couple of years and believe you can keep those huge increases when the state is in such bad shape. Business don’t give big raises out when profits are way down.
don;t buy dodge chargers for the highway patrol very expensive cars . also state employees don/t need chevy impalas aveo or cobalt are cheeper in price and also get better milage. cut wages of all state reps including the governors wages in half and then see how dedicated they are in doing there job. also way to many funding going to private parties because everyone wants a piece of the pie that the times are get rough …. how does the figure iowa families can do with less and get done why can;t our educated officials get it done ????
Put a hiring freeze on all State Depts.
Kick the Legislature out of town early or at least don’t let them go over their normal end of session date.
Cut back on unnecessary out of State travel.
As the judical system did recently I am suggesting the whole state of IOWA take a Furlough Day from the Govenor on down. At tax time add a days pay for everyone filing. If the Govenor could declare a national holiday no one would be upset.With this tax everyone should be guranteed another holiday. A Save Iowa Tax Day. I am on Social Security and would give if everyone did.
Currently, the state pays registered daycare providers a certain rate per meal and snack for each child in daycare. If the child comes from a low income home, the provider gets paid about double for that child even though the cost of the meal is the same. Why not go to a consistant reimbursement level regardless of income level? Paying the lower amount would save $200 – $400 per daycare per month in state expenses.
I would like to make a suggestion on a way to help the state MAKE money. It concerns the smoking ban.
Why not let the Taverns and Bars or lounges that would like to allow smoking in their establishments pay for a SMOKING LICENSE.
The money they pay would go to the state.
They have to pay for a liquor license why not a smoking license??
This way — you would make ALOT of bar owners happy. Also – smokers would have a place to go also.
The bar owners that don’t want to allow smoking would not have to pay and they could remain smoke free places so the non- smokers would have places to go also.
Do not include restaurants that make most of their income from food. That way all
restaurants would remain smoke free!! Smokers don’t usually smoke while they eat anyway. And I think that this issue is what most non-smokers are complaining about the most. They don’t want people smoking around them while they eat.
And I think you should charge the casinos also if they want to allow smoking.
Signs should be posted at the entry of taverns and bars to let people know if they are smoking or non-smoking.
That way non-smokers would know if smoking is allowed and they don’t have to enter then if they don’t wish to. If they decide to enter they should not complain!! The business has paid for that right.
I think changing this law would make alot of people happy. Bar owners, smokers and Non-smokers too!!
It would also raise alot of money for the state. And also give smokers -who have been singled out – a place to go also. We (Smokers) are tired of standing out in the cold. Thank you for reading my suggestion. Mary Lange
P.S. Only establishments that make most of their income from sales of Alcohol would be effected besides the casinos.
Replace House Speaker Pat Murphy with someone who has some common sense. The week-end of trying to gain one vote for the Democrat agenda for unions is a waste of taxpayer money. The cost of electricity and heating for the week-end is a total waste. Why are Democrats in the pockets of the unions? There are many good workers in Iowa who are not union members. It sounds like the Democrats are very bias toward unions and very prejudice against hard working Iowans who are not union members. Non-union workers could save the state money. Be fair to both union and non union workers.
HOW ABOUT NOT MAKING THE FRONT LICENSE PLATE THE REAR PLATE IS ONLY USED TO CHECK THE CAR AND DRIVER OUT JUST THINK HOW MUCH WOULD AND COULD BE SAVED THANK YOU DENNIS BRUSTER