Iowa state budget

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Iowa, like other states, has seen declining revenue caused by the national economic recession.

Iowa will receive approximately $209 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.^[1] Approximately $128 million of the money is intended for the state’s Medicaid program, which is utilized by nearly 400,000 residents.^[2]

See also: The Iowa State Budget on State Budget Solutions

[edit] Fiscal Year 2011 State Budget

Following the shortest state legislative session in nearly four decades, the Iowa legislature adjourned after passing a balanced budget.^[3] The budget increased property taxes and made cuts to state government.^[3] To address the shortfall faced by the state, the Legislature's changed purchasing and computer operations, merged some small agencies, and restructured operations in some larger departments. When combined with an early retirement package offered to state employees, $270 million were saved.^[4]

Of the expenses in FY2011 state budget, $725 million of them will be paid for with one-time sources of income, the majority of which are federal stimulus funds.^[5]

A review by the nonnpartisan Iowa Taxpayers Association concluded that the FY2011 state budget is projected to spend more money than is collected via tax revenue. The group also expressed concern over lawmakers' funding ongoing expenses with time-limited or one-time revenue sources topping $600 million.^[6]

[edit] State Budget in Prior Years

The state faced a budget shortfall of approximately $1 billion shortfall for FY 2011 in addition to $415 million for the current budget.^[7] The Iowa General Assembly passed a reduced budget for FY 2010 of $5.77 billion compared to $5.9 billion for FY 2009.^[8] 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.^[9] The preliminary plans included a proposed reduction of 1,321 state government positions, including 791 layoffs and eliminating 529 vacant positions.^[10] The 10% cut represents a reduction of $564.4 million.^[11]

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.^[12] The Iowa General Assembly will again convene January 11, 2010.^[13]

[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.^[14]
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.^[15]

[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 [16]	$90.2 [16]
2001	$18.2 [16]	$91.9 [16]
2002	$19.3 [16]	$97.4 [16]
2003	$19.9 [16]	$102.2 [16]
2004	$20.6 [16]	$111.9 [16]
2005	$21.4 [16]	$115.6 [16]
2006	$23.0 [16]	$121.9 [16]
2007	$24.7 [16]	$129.0 [16]
2008	$26.4 [16]	$136.5 [16]
2009	$28.4* [16]	$144.4* [16]

• NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year

[edit] 2009-2010 budget crisis

See also: Iowa state budget (2008-2009)

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.^[7] 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.^[9] The preliminary plans included a proposed reduction of 1,321 state government positions, including 791 layoffs and eliminating 529 vacant positions.^[10]

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.^[17][18] 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.^[19]

[edit] Accounting Principles

Main article: Iowa government 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.^[20]

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^[21]:

• Finance and Operations
• Legal Counsel
• Legislative Liaison
• Marketing and Communications

[edit] Budget transparency

Iowa currently has no statewide, official spending database online.

See also: Evaluation of Iowa state website

See also: Iowa Open Records Law

[edit] Economic Stimulus Transparency

See also: Iowa Open Records Law

• Iowa will receive approximately $209 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.^[22] Approximately $128 million of the money is intended for the state’s Medicaid program.^[23]

• It is estimated that Iowa will receive at least $1.5 billion in federal funding.^[24]

• 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.^[25][26]

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.^[27]

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases

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:

• Public Interest Institute
• www.iowatransparency.org

[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

• Iowa taxpayer-funded lobbying

[edit] External links

• State Budget Solutions, Iowa
• 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

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