Governor Branstad Releases Budget Recommendations for FY 2013

This morning we received the Governor’s budget recommendations for FY 2013. We will be doing a thorough line-by-line review of the recommendations and have a caucus later in the week to give you additional details.

House Republicans appreciate that the Governor released his budget this early in session because it will allow us to get to the important work of creating a budget that is sustainable, while funding the priorities of Iowans and creating an environment that will stimulate job growth.

The Governor’s goals for his budget are to create 200,000 jobs, raise family incomes by 25 percent, make Iowa #1 in education again and reduce the cost of government by 15 percent.

The Governor recommends appropriating $6.244 billion, or $244 million more than was originally appropriated for FY 2012. This is a 4 percent increase over FY 2012.

Available ongoing revenue for spending is estimated at $6.251 billion so the Governor’s budget spends less than the state takes in, one of the main budget goals of House Republicans.

The expenditure limitation is $6.475 billion but that includes the FY 2012 ending balance. House Republicans have insisted that this one-time ending balance money not be used for ongoing spending.

The bulk of the increase in the FY 2013 budget is as follows:

  • Medicaid ($80 million)
  • Two % growth for K-12 ($25 million)
  • Economic Development ($25 million)
  • Mental Health ($20 million)
  • Regents ($20 million)
  • Education Reform ($17 million)
  • Prisons ($14 million)

In addition, the Governor has promised to find between $40 million and $60 million in efficiencies in the Road Use Tax Fund in order to increase funding for road construction and bridge repair.

House Republicans will give the Governor’s budget serious consideration and will continue to work to find efficiencies in order to make state government leaner and assure that Iowans’ budget priorities are funded. A stable and lean budget is one of the keys to creating an environment that will lead to job creation in the state.