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