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.
The Governor’s recommendation for FY 2012 general fund expenditures is just over $6.1 billion, or a decrease of $185 million compared to adjusted FY 2011. This is the first budget proposal in five years to align ongoing revenue with ongoing spending and it does it in the first year (FY 2012).
House Republicans agree with the Governor that ongoing spending must be aligned with ongoing revenue and therefore will propose budget targets that accomplish that goal.