Department of Economic Growth Proposed Budget Cuts

In order to implement a Fiscal Year 2010 10% across the board cut, the Governor has once again asked his agencies to compile a list of items they can do without. Fortunately for Iowa taxpayers and the state legislature these ideas have been published online. A few of these new ideas can be found in last year’s House Republican plan. Others seek to eliminate jobs, consolidate responsibilities and reduce services.

A summary of the cuts submitted by agencies to comply with the 10% across the board reduction in the Economic Development bill include cuts for the following: Iowa Workforce Development, Cultural Affairs, Economic Development, and the Office of Energy Independence (Power Fund). The cuts are as follows:

Iowa Workforce Development:
• Leave vacant a position created by Deputy Commissioner retirement.
• Reduce purchases of office equipment.
• Reduce cell phone use to essential staff.
• Revert funds for field office operations.
• Eliminate inspection of inflatable amusement rides.

Cultural Affairs:
• 40% reduction in three grant programs: Big Yellow School Bus, EZ 1-2-3 and Iowa Arts Council Mini Project Grants.
• Eliminate workshops and conferences.
• Suspend intake of records from agencies to state records center.
• Suspend microfilming of weekly Iowa newspapers.
• Reduce site visits to major cultural organizations.
• Close gift shops at Historical Building and Western Trails Center.

Economic Development
• Reduce funding for assistance to Iowa companies.
• Reduce Travel Guides by 20%.
• Eliminate the Iowa State Fair give-away campaign.
• Decrease assistance to Main Street Communities by 67%.
• Reduce Tourism advertising by 25%.
• Reduce funding for the Targeted Small Business program activities.

Office of Energy Independence (Power Fund)
• Reduce in-state and out of state travel for Power Fund board members.
• Reduce “outreach” services to potential Power Fund applicants.
• Reduce amount of funding available for grants.

For details on all proposed budget cuts, refer to the following documents:
SUMMARY – Preliminary Departmental ATB Implementation Plans
ALL DEPARTMENTS – Preliminary Budget Cut Plans