Two-thirds of proposed state-worker layoffs spurred by a 10-percent, $565-million across-the-board budget cut would be in the Iowa Department of Corrections, but Governor Chet Culver -- who gets the final say on the cuts -- said he wants to mitigate that before the plans become final.
"I disagree with some recommendations that cut services to children and vulnerable adults, as well as in areas of public safety," Culver said. "These cuts have a very disproportionate impact on public safety, an area I vowed to protect. ... I want to find a way to mitigate that situation."
The leader of Iowa's largest union for state workers declined immediate comment on the proposed layoffs, saying that AFSCME Iowa Council 61 is still reviewing the plans released by the governor's office.
"We want to reiterate our expectation that going forward, the state of Iowa should treat this current situation the same as it would a major plant closing, and provide all appropriate support to workers who are being laid off that is available to them," said Danny Homan, president of AFSCME Iowa Council 61.
Preliminary plans show that 1,321 state-government positions would be reduced as a result of the cut. That includes 791 layoffs and the elimination of 529 vacant positions.
Of those, 515 would be laid off and 262 vacant positions would be held open in the Department of Corrections, which would take a $35.7-million cut. State prisons in Fort Madison and Anamosa would each see 80 layoffs, while the Fort Dodge Correctional Facility would see 51 layoffs.
Here's a summary of some of the other budget cuts and layoffs proposed in other areas:
- Human services: The 79 positions being eliminated will mean slower response times, increased caseloads, a delay in implementing certain child-health-care programs, and less room at state facilities. Layoffs will come from the central office in Des Moines, at juvenile facilities in Toledo and Eldora, and at the mental-health institute in Independence.
- Education: Several education initiatives including universal preschool and beginning teacher mentoring would be scaled back; furloughs are being considered. A $239.5-million cut in state aid to schools translates into roughly 4,000 teachers statewide using average salary numbers, although impact to schools will vary by district.
- Public safety: Fifty-three layoffs would include 20 state troopers, 20 gaming-enforcement officers at casinos, two narcotics-enforcement officers, two criminal-intelligence analysts, and a fire inspector. The trooper reduction would result in prolonged emergency response time, an elimination of 24-hour coverage, compromised officer safety, and fewer citations and arrests.
- Public health: Less testing and treatment for infectious diseases such as chlamydia, gonorrhea, or latent tuberculosis, and less education and treatment for disorders such as problem gambling and substance abuse.
- College student aid: An estimated 21,285 college students would see their scholarship awards decrease under proposed cuts by the Iowa College Student Aid Commission. Eleven teachers would not receive awards under the Iowa Teacher Shortage Loan Forgiveness Program.
- Iowa Public Television: Cancellation of overnight broadcast service, production of fewer local programs, broadcast of more repeats, fewer episodes of Iowa Press and The Iowa Journal.
Culver's Critics Respond to Layoff Plans
Culver's cut is by far the largest reduction in recent history, according to a new report from the Legislative Services Agency that summarizes across-the-board reductions for the past three decades.
Iowans for Tax Relief President Ed Failor Jr. called plans for state-budget cuts and layoffs released this week "lazy and reactive" and advocated again for state-worker pay cuts rather than layoffs.
"I am sure there are state workers out there who would happily take a full 10-percent pay cut to make sure they still had a job," Failor said. "Yet they were not provided that option. Instead Governor Culver told his managers to cut jobs and send employees to the unemployment line. That is a bad joke on good Iowans. ...
"In these difficult economic times, Iowa families have had to make substantial changes to their budget, not get rid of family members. Iowans are adjusting to make ends meet, while state bureaucrats are using scare tactics, cutting essential services, and sending more Iowans to the unemployment line."
Republican gubernatorial candidate Bob Vander Plaats called the proposed budget cuts "one of the darkest days in state-government history."
Vander Plaats said that laying off 515 corrections employees and leaving another 262 position vacant in the state's prisons, and laying off 53 public-safety employees while leaving another 25 positions open is putting public employees and citizens at risk. He also said laying off front-line human-services employees will also make it harder for the workers who remain to protect children.
"Governor Culver's actions are reckless, irresponsible, and unconscionable," Vander Plaats said. "After he has bankrupted state government, he comes out today, puffs up his chest and claims he's making tough decisions and exercising leadership."
Iowa's Dwindling Reserves Spur Concerns About School Payments, Bond Rating
A plan by Culver to use at least $200 million from the state's cash reserves to balance the Fiscal Year 2011 budget could put the state's coveted triple-A bond rating at risk and potentially lead to late state-aid payments to Iowa's school districts.
Iowa currently has about $375 million to $400 million in cash reserves that helps the state "cash flow," or pay its bills on time. Using at least $200 million would leave less than $200 million. The fund is down from a high of about $900 million when Governor Terry Branstad left office in 1998.
"If we can't cash flow, school-aid payments can be delayed, which puts districts in a real quandary to try to figure out how to handle things," said State Auditor David Vaudt, a Republican.
The "rainy-day fund" has been used to help Iowans recover from last summer's historic floods and was most recently tapped September 25, when Culver signed an executive order immediately transferring $45.3 million from the state's economic-emergency fund to balance the fiscal year 2009 budget. The governor has recently become more vocal about the need to tap those reserves again in the upcoming fiscal year, which he now acknowledges could have a budget gap of $1 billion.
Iowa is not alone in its use of rainy-day funds. More than 40 percent of states enacted across-the-board cuts and used rainy-day funds to reduce or eliminate budget gaps in fiscal year 2009, according to The Fiscal Survey of States by the National Association of State Budget Officers.
Iowa solved a potential problem with cash flow in past years by borrowing money to pay the state's bills on time.
State Treasurer Michael Fitzgerald said he suspects the state will do this again, and will probably borrow $200 million to $300 million in January for six months. But Republicans have spoken out against borrowing, and Vaudt pointed out that there is a cost involved.
Fitzgerald, a Democrat, believes the state will still keep its triple-A bond rating should the fund dwindle down to less than $200 million, but acknowledges that tapping the state's reserves could have an impact.
"It's like the family budget at home," he said. "The more your savings dwindle and the more your bills go up, the more your credit score's going to drop or change."
2010 Campaigns Begin
About 20 Iowans have already stepped up to the plate to challenge incumbents in Congress and statewide office in the 2010 election, even though the filing deadline for the primary isn't until March.
Most of the candidates realize that challenging an incumbent is difficult from both a fundraising and name-recognition standpoint. For example, reports filed recently with the Federal Election Commission show that all of Iowa's members of Congress have so far raised more money than their challengers, most of whom have yet to file an FEC report or reported paltry figures.
The primaries among those who hope to challenge Culver and U.S. Senator Chuck Grassley have garnered the most attention. But down-ticket candidates are surfacing for other statewide and congressional races.
Mike Mahaffey of Montezuma, an attorney who's a former chair of the Republican Party of Iowa, told IowaPolitics.com he'll decide soon whether to run in the Third Congressional District against Clive psychiatrist Pat Bertroche and fomer airline pilot Dave Funk of Runnells. That could put him in line for a possible rematch with U.S. Representative Leonard Boswell (D-Des Moines). "Call me back in two weeks and I should have the answer," he said.
Another popular race has been the one to challenge U.S. Representative Dave Loebsack (D-Mount Vernon) in the Second Congressional District. So far, two Republicans -- Christopher Reed of Marion and Steve Rathje of Cedar Rapids -- have officially launched their campaigns in that race. Last year's nominee, Mariannette Miller-Meeks of Ottumwa, stopped practicing ophthalmology in December and is planning a run as well.
Meanwhile, U.S. Representative Tom Latham's seat in the Fourth Congressional District is one that received national attention last year but hasn't yet seen any official candidates surface this year.
Becky Greenwald of Perry, who last year was the Democratic nominee in the district, told IowaPolitics.com she won't be a candidate next year. "I need to work on building my savings back up," she said.
A report she filed last week with the Federal Election Commission shows Greenwald had one contribution of $25 in the third quarter this year, with expenditures of $2,000 and a campaign debt of $8,074. Her cash-on-hand was reported as being in the red by $387. "I have some debt to retire," she said.
In the race for statewide office, former state Representative George Eichhorn (R-Stratford) said he's laying the groundwork to run for secretary of state, a job currently being held by Democrat Michael Mauro.
And Story County Treasurer David Jamison, an Ames Republican, has already filed paperwork changing his campaign committee from one for county treasurer to one for state treasurer.
"I have no illusions that this is anything other than a long, steep uphill climb," he said. "I think we're going to have to just work hard. It's just a lot of windshield time, a lot of driving, just getting out wherever there's a few people gathered."
Chief Justice's Husband Accepts Plea Deal
Iowa Supreme Court Chief Justice Marsha Ternus broke her silence about a teenage drinking party held at her house July 12, saying in a written statement that she was asleep and didn't know that her son and others had gathered around a bonfire outside and were drinking beer.
"There have been questions concerning my whereabouts on the evening in question. The reality is that I was asleep in our house," Ternus said in a statement issued through family friend Eileen Wixted. "Unknown to me, a group of college students that included our son had gathered nearly a half-mile from our house where they had started a bonfire. I had no knowledge my son and his friends were on our property that night, or that they were drinking, until after the Polk County Sheriff Deputy had arrived."
Ternus said she had been unable to talk about the incident because the Iowa Code of Judicial Conduct prohibits judges from talking about pending cases. That changed when her husband, Dennis Drake, entered a plea to a misdemeanor charge of harassment of a public official.
"This event and its aftermath have been difficult for me and our family," Ternus said. "Just like all parents, we strive to raise our children to be responsible citizens. My husband and I have taken steps to ensure a similar event will not occur in the future."
Drake's acceptance of a plea bargain over his role in the party lets him avoid a trial.
"I apologize to anyone affected by my actions, including my children, and to my wife for the difficulty my actions have created for her as chief justice," Drake said in a written statement.
Drake, 58 and an attorney who's general counsel for Iowa Health System, was scheduled to stand trial in Polk County District Court for interference with official acts. Instead, he entered an Alford plea to a charge of harassment of a public official.
The Alford plea means Drake accepted a plea bargain without specifically admitting guilt or wrongdoing. He was granted a deferred judgment, ordered to pay a $65 fine, and placed on probation for 12 months.
Drake's 19-year-old son Rob, who was convicted of underage possession of alcohol, in a written statement apologized for his actions and thanked his parents for their love and support.
This weekly summary comes from IowaPolitics.com, an online government and politics news service. IowaPolitics.com staff contributed to this report.
