Fiscal Services: FY 2010 Budget Spends $5.9 Billion After Across the Board Cut

On opening day of the legislative session, both the Speaker and Majority Leader said spending in FY 2010 is $5.2 billion, or less than the budget approved in 2006. The Governor repeated the falsehood in his Condition of the State speech. However, this ignores almost $700 million of general fund spending that was pushed “off-budget” in order to balance the FY 2010 budget.

Here is the general fund spending from FY 2007 to FY 2010 (in millions):

FY 2007 – $5,385 *
FY 2008 – $5,888 **
FY 2009 – $5,934
FY 2010 – $5,233 ***

* Last year of House Republican control of House, $50.2 million in supplemental appropriations were added to FY 2007 but pushed into FY 2008 and spent by the Democrats

** First year of Governor Culver and Democrat control of the Legislature

*** After the 10% across the board cut is applied to the Executive, Legislature and Judicial branches

However, when the use of cash reserve funds and federal stimulus funds for general fund purposes is included to provide an accurate picture of state spending, the numbers show that FY 09 and FY 10 are both around the $6 billion mark:

FY 2007 – $5,385
FY 2008 – $5,888
FY 2009 – $5,934 (plus $154 million in stimulus) = $6.088 billion
FY 2010 – $5,233 (plus $592 million in stimulus, $80.3 million in cash reserves) = $5.905 billion

The primary reason there is a $1.1 billion spending gap in FY 2011 is because of overspending and the use of one-time money in FY 09 and FY 10.

Source: Legislative Services Agency, Fiscal Services Division

The primary reason there is a $1.1 billion spending gap in FY 2011 is because of overspending and the use of one-time money in FY 09 and FY 10.

House Republicans believe that the budget should be transparent to Iowans. By not telling Iowans the whole truth, they are keeping them from knowing exactly how much state government is spending.

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