A Long Way To Go on The Budget

State Budget: A Long Way to Go
The budget remains our primary focus during this session.  It’s no secret that Governor Culver’s FY2011 budget spends more than it takes in, with expenditures exceeding revenue by as much as $1.3 Billion. Iowa has a statutory spending limitation of 99% of revenue, but the Governor is proposing expenditures of 111% of revenue. That won’t work in your family or mine, and it’s not going to work in the state’s finances either. One unacceptable result of this deficit is a likely hike in property taxes, but that’s not all. The Governor plans to tap Iowa’s Cash Reserve Fund to the tune of over $200 million, leaving the state in a more precarious financial position. I did not vote for the FY2010 budget and I will not vote for the FY2011 budget if it spends more than we take in.

House Republicans proposed numerous spending reductions for the FY2010 budget (see partial list below), but House majority democrats shot every one of these proposals down.

End Benefits to Illegal Immigrant Adults	$92,300,000
Shift Voluntary Preschool Responsibilities to Empowerment	$45,000,000
See Vehicle Fleet, Outsource Vehicle Leasing (one time)	$34,000,000
Eliminate “phantom” employees – funded, unfilled FTE positions	$25,000,000
Combine State Information Technology and Email Systems	$20,000,000
Reduce Funding for Library Acquisitions at Regents by 50%	$13,500,000
No DNR Land Acquisitions for FY2010	$5,000,000
Eliminate Taxpayer Funded Lobbyists	$4,000,000
Freeze non-critical out-of-state travel	$1,500,000
Eliminate Washington DC Internship (seek private funding)	$90,000
Eliminate Charger Flights by Members of the DOT Commission	$17,000

Although House Democrats claim they are making $260 million in spending reductions, the spending data they distributed this week clearly shows their current budget still spends as much as the previous year.  House Republicans will be offering numerous cost savings ideas again this year, but we’re going to need a virtual public outcry to get democrats to make the necessary spending cutbacks.

Potential Medicaid Crisis Looming

Legislative Democrats plan to underfund Medicaid by $347 million in FY2011, using cash reserves to make up $187 million of the shortfall, and relying on Congress to extend the Medicaid matching rate for another $95 million – provided Congress votes for the extension. However, if these projections don’t occur, the General Fund contribution for Medicaid will amount to only half of the state’s need. Fast forward to FY2012, and Medicaid could need over half a billion in additional General Fund dollars.

In Your Community

We will have our Forum on Saturday, March 20^th from 9:00-10:00 a.m.  It will be held at the Administration Bldg., 2^nd floor, Indianola.

As always, thank you for giving me the opportunity to represent our district in the House of Representatives. That responsibility means a lot to me, and I am working hard to ensure your voice is heard.