Iowa state budget
From Sunshine Review
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Iowa, like other states, has seen declining revenue caused by the national economic recession. The state is currently facing a budget shortfall of approximately $1 billion shortfall for FY 2011 in addition to $415 million for the current budget.[1] The Iowa General Assembly passed a reduced budget for FY 2010 of $5.77 billion compared to $5.9 billion for FY 2009.[2] Gov. Chet Culver announced October 8, 2009 he was implementing a 10% across-the-board cut in state government spending. Revenue estimates projected declines in state revenue of 8.4%, or $414.9 million, compared to last year.[3] The preliminary plans included a proposed reduction of 1,321 state government positions, including 791 layoffs and eliminating 529 vacant positions.[4] The 10% cut represents a reduction of $564.4 million.[5]
Reduced revenue projections back in April of 2009 led Gov. Culver to revise and cut 7.9% from his FY 2010 budget recommendation to the Legislature during its session.[6] The Iowa General Assembly will again convene January 11, 2010.[7]
[edit] Budget Background
In Iowa state agencies prepare and submit requests by October 1st for the following fiscal year. On December 15 the Revenue Estimating Conference, comprised of the Governor, the director of legislative services agency, and a third member agreed to by the other two, meet to estimate the revenue for the upcoming fiscal year. The Governor then reviews the budget requests by state agencies, conducts public hearings and submits recommendations to the General Assembly in January. From January through February the legislature hosts a variety of joint meetings. Once the budget bill is approved the bill is submitted to the Governor, who has line-item veto authority in appropriations bills.[8]
Iowa's fiscal year begins July 1 and ends June 30.
Section 8.31, Code of Iowa, states that if the Governor determines that the estimated budget resources during the fiscal year are insufficient to pay all appropriations in full, the reductions shall be uniform and prorated between all departments, agencies, and establishments upon the basis of their respective appropriations. Gov. Culver ordered a 1.5% reduction of $89.1 million for FY 2009. The FY 2009 budget was reduced in total cuts from $6.13 billion to $5.95 billion. The latest round of cuts for the current fiscal year reduces the FY 2010 General Fund budget to $5.18 billion, $5.77 billion with federal funds.[9]
[edit] Budget figures
The following table provides a history of Iowa's expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $17.2 [10] | $90.2 [10] |
| 2001 | $18.2 [10] | $91.9 [10] |
| 2002 | $19.3 [10] | $97.4 [10] |
| 2003 | $19.9 [10] | $102.2 [10] |
| 2004 | $20.6 [10] | $111.9 [10] |
| 2005 | $21.4 [10] | $115.6 [10] |
| 2006 | $23.0 [10] | $121.9 [10] |
| 2007 | $24.7 [10] | $129.0 [10] |
| 2008 | $26.4 [10] | $136.5 [10] |
| 2009 | $28.4* [10] | $144.4* [10] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year
See Iowa state budget (2008-2009) for more details.
[edit] 2009-2010 budget crisis
The state of Iowa is currently facing a budget shortfall of approximately $1 billion shortfall for FY 2011 in addition to $415 million for the current budget.[1] In October 8, 2009 the governor announced that he was implementing a 10% across-the-board cut in state government spending. Revenue estimates projected declines in state revenue of 8.4%, or $414.9 million, compared to last year.[3] The preliminary plans included a proposed reduction of 1,321 state government positions, including 791 layoffs and eliminating 529 vacant positions.[4]
In February 2010 a package for early retirement incentives for state workers was given final approval by the Senate and the House. The plan is estimated to save the state $60 million a year and reduce the budget shortfall.[11][12] Additionally, lawmakers are considering a plan to "streamline state government." According to officials the reform could save the state $300 million in the first year of the 5-year effort.[13]
[edit] Accounting Principles
The Iowa State Auditor is David A. Vaudt. The Auditor of State is a constitutional official, elected every four years. The Auditor is required to annually make a complete audit of the books, records and accounts of every department of state government. Iowa’s audit reports are published online.[14]
The Iowa Department of Administrative Services (DAS) was created on July 1, 2003. Ray Walton became Chief Operating Officer of the Department of Administrative Services in 2007. DAS Core consists of[15]:
- Finance and Operations
- Legal Counsel
- Legislative Liaison
- Marketing and Communications
The Institute for Truth in Accounting (IFTA) rates Iowa “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Iowa’s CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[16] Iowa’s CAFRs are published online by the Iowa Department of Management.[17]
[edit] Accounting transparency checklist
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[edit] The good
- The website has Comprehensive Annual Financial Reports (CAFR) dating back to 1997.[18]
- An independent auditor’s report is published on page 2 of the document. [19]
- It provides supplements to the budget workup, such as non-major Governmental funds, starting on page 94 of the document.
- The budget is posted using organized and consistent methods of financial reporting.
- Iowa law requires a balanced budget.[20]
- It includes all costs incurred by the government, including future liabilities, starting on page 137 of the document.
- The CAFR compares estimated and actual budgetary numbers, such as on page 100 of the document.
- The Iowa office was timely in submitting the budget.
[edit] The bad
- The CAFR is posted in a non-searchable PDF format, so it’s not searchable online.
| Credit Rating | Fitch | Moody's | S&P |
| Iowa[21] | AA+ | Aa1 | AAA |
Iowa House File 801, which would have created a transparency database, died,[22] despite passing the House by 96-3. It will be raised again next year during the second session of Iowa's General Assembly.
[edit] Budget transparency
Iowa currently has no statewide, official spending database online.
[edit] Website evaluation
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Iowa.gov is the website for the state of Iowa.
- Main article: Evaluation of state websites
[edit] The good
- Audit reports are available.[23]
- Information on state ethics commission available.[24]
- State tax information is provided.[25]
- Elected and administrative officials are listed with contact information under respective departments.[26]
- Provides list of Executive branch lobbyists.[27]
[edit] The bad
- Site has a search function, but is somewhat difficult to navigate.
- Budget recommendation and process information posted, but the full budget is not posted on the website. The budget for FY 2010 can, however, be found online at this link.[28]
- State contracts are not available.
- Does not provide information on state-paid lobbying and agency lobbying contracts.
- Attorney General has information on Iowa Open Records Law, but no forms/contact info to make record requests are available.
[edit] Economic Stimulus Transparency
- The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[29]
- It is estimated that Iowa will receive at least $1.5 billion in federal funding.[30]
- The economic recovery website for Iowa is available here.
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[31][32]
More than $10.5 million in stimulus funds were distributed to eight Congressional Districts in Iowa that do not exist, according to the ARRP website.[33]
[edit] Legislation
- See also: Iowa Open Records Law
Iowa House File 801, which would have created a transparency database, died,[34] despite passing the House by 96-3. It will be raised again next year during the second session of Iowa's General Assembly.
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary |
|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Limitations and Suggestions
[edit] Support for creation of the database
Although State Representative Jamie Van Fossen supported transparency legislation this spring, House File 2439 failed to pass, according to the Public Interest Institute's October edition of the "Iowa Transparency Newsletter."
[edit] Independent transparency sites
Although there is currently no state spending database in Iowa, there are several links (provided below) related to Iowa's level of transparency:
[edit] Public employee salary information
Iowa's Des Moines Register maintains a public employee salary database.
Additionally, the Department of Administrative Services posts some salary data here.
[edit] See Also
[edit] External links
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Public Interest Institute
- Iowa Department of Management
- Public Employee Salary Database
[edit] Additional Links
- Business Week,"Iowa lawmakers debate gov't efficiency effort," February 1, 2010
- Governor Chet Culver,"2010 State of the State Address," January 12, 2010
- The Iowa Independent,"Gas tax showdown on the horizon," February 9,2009
[edit] References
- ↑ 1.0 1.1 KCCI,"$1 Billion Iowa Budget Shortfall Projected," November 25, 2009
- ↑ Iowa Graybook, “FY 2010 Appropriations Tracking,” July 14, 2009
- ↑ 3.0 3.1 Gov. Culver Press Release , “Governor Culver’s Statement on Balancing the State Budget,” October 8, 2009
- ↑ 4.0 4.1 Gov. Culver Press Release , “Preliminary Departmental Plans Released on State Budget Cuts,” October 21, 2009
- ↑ Iowa Legislative Services Agency, “Across-the-Board Reductions,” October 2009
- ↑ Gov. Culver Press Release , “Governor Culver: During Tough Times, We Must Be Fiscally Responsible,” April 3, 2009
- ↑ Iowa General Assembly Web site, retrieved October 22, 2009
- ↑ State of Iowa,"Iowa state budget process," January 1,2006
- ↑ Iowa Legislative Services Agency, “Across-the-Board Reductions,” October 2009
- ↑ 10.00 10.01 10.02 10.03 10.04 10.05 10.06 10.07 10.08 10.09 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 US Government Spending,"Iowa State and Local spending," retrieved February 27,2009
- ↑ Business Week,"Iowa Senate gives final OK to retirement plan," February 4, 2010
- ↑ Omaha World-Herald,"Iowa budget could be reframed," January 25, 2010
- ↑ Associated Press,"Culver: Effort will save $200 million or more," January 25, 2010
- ↑ Iowa State Auditor Web site, retrieved October 22, 2009
- ↑ Iowa Department of Administrative Services Web site, retrieved October 22, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ Iowa Department of Management Web site, retrieved October 22, 2009
- ↑ Iowa CAFRs
- ↑ Iowa CAFR
- ↑ Institute for Truth in Accounting, Iowa
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009
- ↑ Iowa House Republicans, "States Opening Checkbook to the Public, Iowa Isn’t One of Them," May 20, 2009
- ↑ Audit reports
- ↑ Iowa Ethics and Campaign Disclosure Board
- ↑ Dept. of Revenue
- ↑ Agency Phonebook
- ↑ Lobbying
- ↑ Dept. of Management
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal, "Stimulus Spending by State"
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Watchdog.org, November 17, 2009
- ↑ Iowa House Republicans, "States Opening Checkbook to the Public, Iowa Isn’t One of Them," May 20, 2009
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