Budget negotiations stalled again this week when Democrats continued their efforts to shut down state government.
“There is no end to the Democrats’ demands to spend more money,” said Majority Leader Linda Upmeyer (R-Garner). “They have been threatening shutdown since May and today they just took another step closer.”
House Republicans and Senate Democrats began the session $147 million apart. Republicans, in an effort to compromise, closed the gap to $46 million. In response, Senate Democrats moved $200 million in the opposite direction.
Since that time, Republicans passed the budget omnibus bill, which Senate Democrat and Appropriations Chairman Bob Dvorsky called, “full and balanced.” Yet, Democrats have continued to offer no compromise or solutions. Instead they continue to demand more spending and march down their path to shut down. Even today they proposed tens of millions of more spending.
“Democrats need to decide whether they want to do Iowans’ work or shut down government,” said Speaker Kraig Paulsen (R-Hiawatha). “Iowans are tired of budgets held hostage just because Democrats cannot control their insatiable appetite for spending. They need to come back to Des Moines and work with Republicans to pass a sustainable budget instead of playing games.”
To hear the audio click below:
Radio Iowa
Republicans in the Iowa House expect to pass a massive bill next week that outlines the GOP’s nearly $6 billion state budget plan as well as a proposal to reduce property taxes.
Democrats in the Iowa Senate already have vowed to reject the package, but House Speaker Kraig Paulsen, a Republican from Hiawatha, says it’s time for lawmakers to quit “dinking” around and wrap up the 2011 legislative session.
“We need to do our job and get this figured out,” Paulsen says.
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Posted below is the analysis of the omnibus budget bill proposed by House Republicans. The current schedule for the bill is to have it go through committee on Monday June 6 and then be debated on the floor on Tuesday June 7.
Omnibus Bill for FY 2012–
Agriculture, Budget, Commerce, Economic Growth, Education, Environmental Protection, Human Resources, Judiciary, Labor, Natural Resources, Rebuild Iowa, State Government, Transportation | JillJ | June 2, 2011 | 
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On Tuesday, May 3, the House and Senate Republicans and Governor Branstad agreed to the total amount of general fund spending for FY 2012. The general fund budget will be just less than $6 billion. This amount is 97 percent of ongoing revenue and over $200 million less than the adjusted FY 2011 budget. It leaves over $300 million in the ending balance and brings the budget back to FY 2009 levels. The next step is getting the Senate Democrats to agree on the spending level. Once that is accomplished, the appropriations bills can be approved by both chambers and sent to the Governor.
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Last week it appeared that the conference committee on Senate File 209 was close to reaching consensus. SF 209 is the federal tax code coupling and FY 2011 supplemental appropriations bill.
House Republicans offered a compromise that would include all of the original provisions of SF 209 including coupling and bonus depreciation as of January 1, 2011, increasing the EITC from 7 to 10 percent, $46 million in supplemental appropriations. The compromise also included $20 million for mental health funding and the language creating the Tax Relief Fund (TRF).
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On Thursday, February 10, House Republicans were set to announce targets for the FY 2012 budget. The targets will fulfill the campaign promise of aligning ongoing spending with ongoing revenue.
Like Governor Branstad, House Republicans are proposing to align ongoing spending with ongoing revenue in FY 2012. This is in contrast to the last four years when ongoing revenue was not sufficient to cover all of the increased spending demanded by the former governor and Legislature.
According to the Governor, the FY 2011 budget (approved by Legislative Democrats and former Governor Culver last year) spent $6.35 billion. This includes $872 million in expenditure shifts, which are general fund expenditures that were funded by one-time and other funds.
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Click below to see highlights of the Governor’s FY 2012 Budget
Talking points for Governor’s FY 2012 Budget
The Revenue Estimating Conference (REC) met today to revise the Fiscal Year 2011 revenue estimates and establish the Fiscal Year 2012 estimate. By law the Legislature and Governor must use the December estimate when creating the FY 2012 budget.
Due to revenue running above estimates, the REC increased FY 2011 by $34.1 million and FY 2012 by $85.5 million. This does not include the revenue the state will see in increased tax collections due to the federal tax cuts being extended. If the tax cuts are extended, revenue will increase of roughly $150 million but that revenue cannot be used for additional spending.
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(DES MOINES) – Speaker-Elect Kraig Paulsen (R-Hiawatha) today announced the budget committee chairs for the 84th General Assembly. Lead by the Appropriations Chair, these committees outline the legislature’s budget.
“Led by Rep. Raecker, the chairs of the House budget committees are committed to crafting open and transparent budgets,” said Paulsen. “House Republicans will look for ways to streamline government and save taxpayers money.”
Click to see the list of chairs
