Today House Republican Leader Kraig Paulsen (R-Hiawatha) released the following statement on the Revenue Estimating Conference recent report on Iowa’s revenue:

“The Legislature cannot use this slight increase in revenue as an excuse to spend more taxpayer money. As we’ve learned over the past three years, excessive spending for short term goals is not the answer.

“House Republicans offered $290 million in savings this session and over $600 million in savings in the last two sessions. Spending less, saving more and enacting reasonable savings is the path House Republicans prefer.”

On Monday, March 8, the House Appropriations Committee approved:

• HSB 728 (Federal Block Grants),
• HSB 733 (Economic Development budget bill),
• HF 2502 (Pension bill) and
• SF 2366 (the second FY 2010 supplemental appropriations bill).

On Tuesday, the Committee approved:

• HSB 731 (Justice System budget bill),
• HSB 732 (Judicial branch budget bill) and
• HSB 733 (Ag and DNR budget bill).

These bills collectively appropriate $712 million for general fund expenditures. This is only 13 percent of the expected general fund appropriations for FY 2011.

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On Wednesday, February 17, the Democrats released partial budget targets for the subcommittees. Once again, they only released the targets for the budget subcommittees, which flies in the face of budget transparency and being truthful to Iowans about the real cost of state government services.

This only shows roughly $2.5 billion of the general fund budget. The release shows that the Democrats are $475 million below the Governor in the subcommittee areas and will approve a general fund budget that spends the same amount as FY 2010.

Continue reading…

House Republican Leader Kraig Paulsen (R-Hiawatha) released the following statement following the Democrats’ release of the partial budget targets:

“These targets give the public an incomplete picture of the Democrats’ spending plan. However, based on what I’ve seen, it appears that legislative Democrats plan to carry forward Gov. Culver’s property tax increases.

“House Republicans will not support a budget that spends more money than the state takes in. Republicans have outlined over $600 million in cost-savings during the last two years. We will continue to fight for limited government and responsible budgeting as the bills move through the process.”

The Fiscal Services Division of LSA has estimated the spending gap for FY 2011 to be $1.1 billion. The Governor used several tactics to close the gap in his budget recommendations. Now the Democrats are beginning to look at each of those items and approve legislation necessary to set budget targets.

The Governor assumed $341 million in general fund savings from state government reorganization and efficiencies. This included three parts: Executive Order 20, the early retirement package for Executive branch employees and a package of savings that requires legislative approval.

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From Republican Leader Kraig Paulsen:

Last week in the House, the State Government committee worked on the reorganization bill (SF 2088). The bill in its current form saves a little over $70 million.

In order for the Governor’s budget to balance, he needs a minimum $391 million in “general fund” spending reductions. About $30 million of that is expected to come through early retirements. Another $90 million will be achieved through the Governor’s savings that he achieved internally for a total $120 million in savings.

This leaves $271 million that needs to be saved through additional legislative decisions.

Continue reading for Republican’s $290 million in savings ideas…

On Monday, February 1, Fiscal Services Division of LSA released its complete review of the Governor Culver’s FY 2011 Budget Recommendations. The review outlines how the Governor was able to close the $1.1 billion spending gap that he and the Democrats in the Legislature created by overspending the past three years.

The report states that while the Governor says he will close the spending gap by reducing state spending and not raising taxes, he proposes some questionable tactics that leave a mess for the next Governor and the new Legislature.

Continue reading to see the tactics used…

Today House Republicans will offer an additional $290 million in General Fund savings today in the House State Government Committee. The committee is scheduled to approve the government reorganization bill, Senate File 2088.

“I’ve appreciated the bipartisan manner in which we’ve worked on the reorganization bill. I believe we have the ability to go further than the original bill and find even more savings and waste in government,” said State Government Ranking Member Doug Struyk (R-Council Bluffs). “I look forward to continued bipartisan work as we move this bill through the process.”

Continue reading to see what savings ideas are being offered…

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:

• $207.5 million from the Cash Reserve Fund
• $37.7 million from the Senior Living Trust Fund for Medicaid
• $48 million in stimulus money for education and general purpose
• $94.2 million in stimulus for Medicaid expenditures

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.

Governor Culver released his budget to the legislature today. You can find a PDF copy of it below:

FY11 Iowa Budget Recommendations