A new January 2010 newsletter is available for viewing. Click the link below to see a PDF version.
Caucus Newsletter January 27, 2010
Included in this edition:
Newsletter | admin | January 28, 2010 | 
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Does the Governor’s Budget Spend Less than the State Takes in?
No. In addition to general fund appropriations of $5.32 billion, the Governor uses $387 million in one-time money to increase spending:
Total spending on general fund items is $5.707 billion
Does the Governor’s Budget Raise Taxes?
Yes. The Governor claims to fund 2 percent allowable growth for K-12 education at $333 million. This is $233 million from the general fund and $100 million from the Cash Reserve Fund. LSA estimates that 2 percent will cost $514 million in FY 2011. Therefore, he underfunds the 2 percent by $170 million. Since the spending authority remains, the $170 million can be made up with in property tax increases. The Governor also proposes other property tax increases by funding the property tax credits below last year’s level and funding the State Patrol out of the Road Use Tax Fund. Both will increase property taxes.
How much is the reorganization savings and is it real?
Unclear. The Governor plugs in $341 million in reorganization savings. Some of the things (IT consolidation, reducing the fleet, eliminating phantom employees) were House Republican ideas from last year. Some of the ideas like increasing unclaimed property and federal grants appear to be dubious at best. Also, $50 million of the savings is for shifting the State Patrol into the RUTF and that is unlikely to happen.
Budget | admin | January 27, 2010 | Comments (0)
Governor Culver released his budget to the legislature today. You can find a PDF copy of it below:
Budget | admin | | Comments (0)
Today House Republican Leader Kraig Paulsen (R-Hiawatha) released the following statement on Gov. Chet Culver’s recent budget proposal:
“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.
“House Republicans will dive into budgets, ask tough questions, and identify savings and government waste while being responsible with taxpayers’ money.”
Budget, Press Releases | admin | | Comments (0)
As the 2010 tax deadline approaches, April 15th, the Internal Revenue Service has published a list – on its website www.irs.gov – of tips taxpayers should keep in mind when filing their returns. Individual taxpayers and taxpayers with children may find the following tips useful:
Taxes | admin | January 22, 2010 | Comments (0)
80,000 Iowans were out of work at the beginning of 2009. Currently, we’re approaching 115,000 Iowans out of work. In 2009, runaway state government passed budget-busting ideas and bonded its way into debt all in the name of “job creation”, only to end up with even more Iowans out of work.
Throwing taxpayer money at the problem didn’t work.
This year, Republicans have proposed a four-point plan for job growth.
House File 2001 – Expands Levy Authority By Up to $380 million
This bill – cosponsored by key Democrats including the Chair of the House Education Committee and the Speaker of the Iowa House – allows Iowa school districts to shift up to $380 million in heath insurance and benefits onto property taxes.
Under current law health benefits for current school employees must be paid for from the district’s general fund budget. HF 2001 allows districts to shift that cost onto property taxes.
Potential Property Tax Impact: $380 million
Education, Taxes | admin | January 21, 2010 | Comments (0)
Chet Culver’s hype last week about a “big” surprise for K-12 education fell flat.
In his state-of-the-state message, Culver promised to cover just a fraction of the $540 million “promissory note” looming for K-12 funding.
The $540 million hole in the school aid formula for FY11 was created by two across-the-board cuts, one-time TARP money (federal stimulus) money, 2 percent allowable growth and the statewide voluntary preschool program.
Continue reading for a breakdown of the $540 million funding hole…
Education, Taxes | admin | | Comments (0)
Last year, House Republicans released a series of budget questions that were used to help Republicans dive into the state budget, bring more accountability to taxpayers and help them develop over $330 million in ideas for savings. Today, House Republicans are releasing a new set of questions they will be asking in the 2010 budget subcommittee meetings.
Republicans have made Democrat leadership, department heads and staffs aware of their questions and House Republican Ranking Members will be again investigating where each taxpayer dollar is spent and relaying that information back to Iowans.
Budget, Press Releases | admin | | Comments (0)
After the Revenue Estimating Conference meeting on December 11, Fiscal Services released the updated general fund balance sheet for FY 2011. The balance sheet shows that with the new revenue estimates, the spending gap for FY 2011 is $1.117 billion.
The spending gap is simply the difference between built-in spending (spending previously approved by the Legislature or mandated by the Iowa Code) and estimated revenue.
Budget | admin | January 20, 2010 | Comments (0)
