Governor Chet Culver has proposed a $5.3-billion state spending plan for Fiscal Year 2011 that uses more than $200 million from the state's cash reserves and $48 million in federal stimulus money, while reducing tax credits by $52.5 million and saving $341 million from state-government reorganization.
Culver said the budget would leave an ending balance of $117.3 million and would leave $265.2 million in the state's cash reserves.
"We have achieved this lower budget by continuing the 10-percent across-the-board budget cut made last fall in Executive Order 19 for most of the General Fund budget," Culver said. "Only 31 percent of programs or agencies would receive any increases over the revised FY 2010 budget ... reflecting the need to reduce state-government spending while preserving critical services for protecting vulnerable adults and children."
Culver's budget recommendations include a $6.9-million increase for the Department of Public Safety to prevent potential layoffs of up to 122 people, and a $25-million increase for the Department of Corrections to avoid layoffs at state prisons.
Other states are counting on additional federal stimulus money to help balance their budgets, while Culver's proposed Fiscal Year 2011 budget does not, Chief of Staff John Frew told reporters.
"The states of California, Arizona, Alabama, and Georgia ... have submitted their budget assuming that the federal government is going to extend additional money for Medicaid and stabilization. More stimulus money," Frew said. "We are in a position to believe that there will be additional funds for FMAP [Federal Medical Assistance Percentages] or Medicaid, but we've not included that in here. If it comes about, we'll know in a couple of months that there's additional money, then we'll visit that."
Culver's budget does include federal stimulus money left over from last year. That includes $94 million for FMAP or Medicaid and $48 million for government and education stabilization.
Frew also said a 7.1-percent across-the-board budget cut last fall would have balanced the state's budget, but the 10-percent cut has given the state a combined $382 million in the ending balance and reserves.
Democratic leaders praised Culver's budget for tightening the state's belt without raising taxes, while Republicans said the budget will lead to an increase in taxes.
House Minority Leader Kraig Paulsen (R-Hiawatha) said: "The governor's budget spends more money than it takes in and will increase the burden on property taxpayers. Once again, decisions in Des Moines are going to drive up property taxes across the state. It's irresponsible and will be costly for Iowans."
"This is just a continuation of the governor not living within his means," said Senate Minority Leader Paul McKinley (R-Chariton). "We've seen approximately $250 million worth of one-time funding. What this does is create a major problem down the road."
Reorganization Bill Key to Legislative Budget Work
The day after Culver submitted his budget, top legislative Democrats said they see the 252-page government-reorganization bill that's moving through the legislature as crucial to kicking off their own budget work.
The bill is scheduled to be debated by the Iowa Senate and House in the first two weeks of February, legislative leaders said Thursday.
"This reorg bill, or a pretty good handle on what's going to end up being in the reorg bill, is a critical piece for us to figure out what the targets are that we're going to give to our budget subcommittees," said Senate Majority Leader Mike Gronstal (D-Council Bluffs). "We're moving quickly on that legislation so that we've got a handle on what the savings are."
An early-retirement bill was approved Thursday afternoon by the House State Government Committee and was slated for passage by the full House within a few days. The committee will tackle government reorganization next.
"We feel like we need to know what our cost savings are both from early retirement and from state reorganization before we can proceed on the budget," said House Speaker Pat Murphy (D-Dubuque). "Those two things need to be done first."
Culver said most of his 50 cost-saving recommendations are not included in the bill, accounting for a difference in how much it will save.
Culver challenged the legislature to find another solution to the state's budget shortfall if lawmakers choose not to approve his recommendations for government cost savings, efficiencies, and reorganization, which he said would save $341 million.
Democratic leaders peg savings from Senate File 2088 and early retirement at $200 million, and a fiscal note shows savings as much less than that.
"We're continuing to work with the executive branch; there will be elements of those recommendation that will probably show up inside budget subcommittees," Gronstal said.
Fundraising Leaves Conlin Looking Like Front-Runner in Senate Primary
Roxanne Conlin raised $603,575 in the two months after she launched her campaign in early November, suggesting that she's the front-runner in the four-way Democratic race for U.S. Senate, Democratic insiders say.
"Without question, she's head and shoulders above everyone in fundraising," said Rob Tully, a former Iowa Democratic Party chair. "The fact that Roxanne is serious enough to do a 99-county campaign indicates, I think, a deeper commitment to the nomination and trying to dethrone Chuck Grassley."
In advance of the January 31 due date, Conlin's campaign announced that she raised $603,575 between November 2 and December 31 and had $502,833 left going into this election year. Donations came from 1,649 individuals, including 1,395 Iowans, and no Political Action Committees.
Meanwhile, Bob Krause of Fairfield, chair of the Iowa Democratic Veterans Caucus, told IowaPolitics.com that he has raised less than $20,000 and has pledged not to accept PAC money. He acknowledged that he doesn't have the ability to raise large sums of money for his campaign, but said an aggressive electronic campaign will allow him to reach more individuals.
Krause acknowledged that Conlin has more name recognition than the other candidates but doesn't think that will help her win the nomination.
The campaign of former state Senator Tom Fiegen of Clarence did not respond to a request from IowaPolitics.com asking how much money he has raised. Fiegen has said he would review contributions from PACs and lobbyists on a case-by-case basis and would not universally dismiss them.
House Knocks Down Bill to Curb Late-Night Votes
An effort to prevent the Iowa House from voting between midnight and 8 a.m. failed Thursday on a 49-45 vote, mostly along party lines.
Representative Peter Cownie (R-West Des Moines) raised the issue as an amendment to a resolution on House rules.
He cited last year's push toward adjournment in April, saying it was "ridiculous" that the House was passing bills at 5 a.m. and adjourned last year at 5:55 a.m.
"Twelve to eight is not a good time for we ordinary, mortal legislators to function," said Representative Richard Anderson (R-Clarinda).
House Majority Leader Kevin McCarthy (D-Des Moines) said Cownie's idea was a good one but asked the House to resist the amendment.
"It is a good goal to try to have debate occur in a reasonable time frame," McCarthy said. "However, given the culture and tradition of the Iowa House and consistent with rules that have been in existence for both Republican and Democratic administrations, it's important, I think, not to unduly box us in at times it may go past midnight."
Representative Scott Raecker (R-Urbandale) said the House has the ability and right to change the rules, despite standard and tradition.
"Just because prior legislatures ... believed that it was appropriate to do business through the late evening and into the early morning hours does not mean that this body needs to chose to do that, as well," Raecker said. "Iowans know we don't do good work between midnight and 8 in the morning, and we know that ourselves."
Hundreds Rally at Capitol for "Putting People First"
Hundreds of members of Iowa Citizens for Community Improvement (CCI) rallied at the Statehouse this week -- filling the rotunda, surrounding the cafeteria area during the lunch hour, and chanting for lawmakers to "put people first."
"We're trying to get our government back from money," said Bob Gale of Des Moines, who said campaign-finance reform is his top priority. "Big money runs our country, and we're tired of it. We want to vote, and we want to have our say. We own this country, not the big corporations. ... All legislation comes from money, not from people. We want to change that."
Barb Kalbach, a farmer from rural Dexter, said this was her eighth year rallying at the Capitol with Iowa CCI. She said she's asking lawmakers to put limits on payday lending.
"Also, we are still after clean water, clean air; we need local control over the confined animal units," Kalbach said. "Already, the budget committee has cut the animal aspect of the DNR animal oversight in half. So we'll have 11 people throughout the state of Iowa trying to keep our air and water clean."
Kalbach contended that action on these issues would not break the state budget. "These issues don't cost the state of Iowa anything, and especially clean water and clean air, it will save the state millions in cleanup," she said.
Ron Eslinger of Des Moines said he's concerned about corporate farming and protection of the environment.
"There's far too little regulation; there's not enough teeth in the regulations that we do have," he said. "The enforcement is understaffed. Budgets have been cut. I think water quality in Iowa is continuing to decline, and that's an economic issue as well as a personal-health issue for a lot of people. People aren't going to move to Iowa if there is not clean, safe water available."
Eslinger urged lawmakers to think long-term as they make their decisions this legislative session.
"We have to expect our legislature to take a longer-term look at the impact of the decisions they're making," he said. "Immediately responding to just the most pressing issue doesn't always serve the people. We have to have actions that take a long-term view for the well-being of all of Iowans."
This weekly summary comes from IowaPolitics.com, an online government and politics news service. Reporter Andrew Duffelmeyer and other correspondents contributed to this report.
