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 20th from 9:00-10:00 a.m. It will be held at the Administration Bldg., 2nd 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.
Update From The House
Straight Talk from Rep. Kent Sorenson
February 19, 2010
Budget Crisis Update
Governor Culver’s budget proposal is out of balance. “Expenditures exceed revenues by as much as $400 million,” says state auditor Vaudt. Unfortunately, we haven’t had the opportunity to debate the budget bill on the floor yet, but you can rest assured that I won’t be voting for a budget that spends more than we take in and I won’t be voting for an increase in your taxes. I will keep you up to date as we debate the various parts of the budget for FY 2011
Government Reorganization Bill Debate Underway
We began debate on the Government Reorganization Bill today and will be considering over 35 proposed amendments, many of which offer additional cost saving ideas. In last week’s newsletter I told you about a bill I sponsored (HF2263) that would save over $100 million by requiring the Iowa Department of Human Services to validate social security numbers before providing services. Were you aware that Iowa spends millions of taxpayer dollars on services provided to illegal immigrants? We will be offering this bill as an amendment to the reorganization bill this week. This amendment alone has the potential to nearly double the savings in the Government Reorganization Bill.
Elimination of the Federal Tax Deduction Again being Considered
Federal deductibility gives taxpayers the ability to deduct 100% of their Federal tax payments on their Iowa income tax returns. However, after last year’s outpouring from concerned citizens trying to stop this bill, the House Ways and Means committee has taken it up again for consideration. The matter was assigned to subcommittee in late January, just two weeks after the National Taxpayers Union released a poll stating that 77% of Iowans support keeping federal deductibility and believe it is in their best financial interest. Along with other House Republicans, I will work to ensure this bill does not go forward.
Forum with Rep. Kent Sorenson and State Auditor, David Vaudt – Saturday, February 20th
You are invited to attend this month’s forum in Indianola at the Administration Building, 301 North Buxton, 2nd floor. The forum will be held between 9:00-10:30 a.m. State Auditor, David Vaudt will be discussing the state budget. His presentation is very informative and interesting. If you have any questions regarding the forum, please contact Susan at 515-202-3733.
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.
Respectfully,
Rep. Kent Sorenson
Kent.sorenson@legis.state.ia.us
515-962-2192
How to Save $100 Million
February 6, 2010
We are four weeks into this legislative session. The majority of our time has been spent dealing with the budget crisis that has been created by irresponsible spending and bad budget decisions. During Gov. Culver’s term, the gap between state spending and revenue has skyrocketed. In FY2009, the spending gap was $400 million, which increased to $800 million in FY2010. Fiscal Services is now estimating a $1.1 billion spending gap for FY2011.
One of the ways that the majority party has chosen to deal with this gap is to sponsor HF2001, which allows Iowa school districts to shift up to $380 million in employee benefit costs from the general fund to property taxes. If passed, HF2001 could result in up to $380 million in additional property taxes for Iowans – so much for “not raising your taxes.” (Governor Culver’s words)
Another way that the majority party plans to deal with the budget mess is to create yet another new operating structure of state government. Democratic leaders of the State Government Reorganization committee claim that there are “scores of millions of dollars to be saved.” However, last week we learned that the current recommended changes yield $1.7 million in FY2010, $28.9 million in the second year and $66.7 million in FY2012, which is far short of the earlier prediction of $200 million in savings from the chairs of the State Government Reorganization Committee, or the Governor’s prediction of $341 million.
If you were to go into a DHS Office, you would see signs declaring that social security numbers are not verified. Every year the people of Iowa spend millions of taxpayer dollars on services that are used by illegal immigrants. I have drafted a bill that requires the DHS to validate the social security number of all applicants before services are granted. The department would need to incorporate the verification requirement into all application processes in the most cost-effective manner. This action would save our state close to $100 million dollars per year.
As I write this newsletter, I am struck by the enormity of the job that lies ahead, particularly with Governor Culver and the Democratic party in control of the legislature. I would ask that all of you stay informed and involved in the business of your government and make your voice heard.
Representative Kent Sorenson
Kent.sorenson@legis.state.ia.us
515-962-2192
Spending & Government Reorganization
January 29, 2010
Iowa’s $1.1 Billion Spending Gap
Governor Culver has increased Iowa’s annual budget by $1 billion during the first three years of his term, and now we are going into fiscal year 2011 with a $1.1 billion spending gap. This is not a coincidence; it is gross mismanagement of our tax dollars. How much is a billion dollars, you say? Here’s how I picture it: You would have to spend $38,052 every single hour of the three years Culver’s been Governor to spend an extra billion dollars. That’s over $913,000 in additional spending every single day!
Government Reorganization Savings Inflated in Governor’s Budget:
Governor Culver included $341 million in Government Reorganization Savings for the FY2011 Budget. However, the Fiscal Impact Statement released on January 20 by the Legislative Services Division predicts only $29 million in savings for FY2011. This overinflated tally includes a shift of $50 million in State Patrol Costs to the Road Fund. Folks, shifting expenditures from one fund to another is not a savings to the taxpayers of Iowa.
I am all for shrinking Government if that is what we are truly doing, but I am not going to allow someone to use smoke and mirrors tactics to shift things around and call it something it is not. As I watch this unfold I am going to be honest to my constituents. Last year we offered over $300 million in cost saving ideas in amendments during floor debates and not one was accepted. Instead, the majority party choose to keep buying bug shields, leather seats, and Bose stereos for state cars, rather than being thrifty with Iowans tax dollars.
House Republicans are working to find real solutions to our state budget crisis, and I look forward to receiving your input as we continue this complicated process.
Respectfully,
Representative Kent Sorenson
515-962-2192
kent@kentsorenson.com
Legislative Update
Iowa government is facing its toughest year yet. As you will read below, the current financial outlook for Iowa is bleak. But in the midst of all these problems, I want you to know that House Republican leaders are asking questions designed to hold legislators accountable and keeping the upcoming budget process transparent for all Iowans to scrutinize.
Iowa’s Spending Gap Rises Perilously
During Governor Culver’s term, the gap between state spending and revenue has skyrocketed. In FY2009, the spending gap was $400 million, which increased to $800 million in FY2010. However, fiscal services is now estimating a $1.1 billion spending gap for FY2011.
How Much Money Will Government Reorganization Save ?
Only a couple weeks ago, Democratic leaders of the State Government Reorganization Committee claimed that there were “scores of millions of dollars to be saved” through creating a new operating structure of state government. However, this week we learned that the current recommended changes yield only 1.7 million savings in FY2010, 28.9 million in FY2011, and $66.7 million in FY 2012, which is far short of the earlier prediction of $200 million in savings.
Property Taxpayers Beware! Education Bill Watch
House File 2001, sponsored by key Democrats, allows Iowa school districts to shift up to $380 million in employee benefit costs from the general fund to property taxes. If passed, HF2001 could result in up to $380 million in additional property taxes for Iowans.
In Your Community
I want to hear your input on addressing Iowa’s issues. Our first 2010 legislative forum is on Saturday, January 30 from 9-10 am at the Norwalk Library, 1051 North Avenue. I look forward to seeing you there!
As I write this newsletter, I am struck by the enormity of the job that lies ahead, particularly with Governor Culver and Democrats in control of the legislature. I’ll need your help this year to make sure our voices are heard.
Respectfully,
Rep. Kent Sorenson
Kent.sorenson@legis.state.ia.us
515-962-2192