More cuts
State legislature poised to slash programs and make deeper cuts in 2010
By Matt Miller
The last year in the decade proved to be historic on many fronts for the state of Iowa. Twenty-oh-nine or 2009 was marked by highs and lows that affected Iowans statewide and locally. Barack Obama made a handful of stops in Iowa, using it as stepping-stones toward the Democratic nomination and eventually the White House. Weather-wise, the Hawkeye state experienced its coolest July on record, while the recent Christmas blizzard of 2009 socked Iowa with record amounts of snow in some areas. At the capitol, Iowa experienced unprecedented events like the legality of same-sex marriage, making our state the country’s fourth to declare that marriage is not only between a man and woman. As lawmakers convene at the capitol building for the second session of the 83rd General Assembly, they hope to make history by staring down Iowa’s issues, including the biggest — finding solutions to a bloody $1 billion budget shortfall.
A return to the capitol
The second session of the 83rd General Assembly begins Jan. 11. State lawmakers plan to meet for 80 days, rather than the typical 100-day session, which they claim will save approximately $40,000 a day. A brief rundown of a session filled with budget cuts, government consolidation and reorganization follows.
Budget
Nearly every day, more of Iowa’s fiscal problems come to light. Talk of universities eliminating academic departments, courts closing and Gov. Chet Culver warning schools to tighten their budgets have become all too common. While the news of trimming the state’s spending isn’t a new topic, the Governor still has until Feb. 1 to share his proposed budget with lawmakers.
“Gov. Culver has said all along that the budget for the 2011 fiscal year will be difficult, and that to meet our state’s economic challenges, we are going to have to work together,” said Troy Price, press secretary with the office of the Governor. “The Governor has already proposed ways the state could save millions of dollars through efficiencies and streamlining state government. He knows it will not be easy, but he is looking forward to working with the legislature on meeting these challenges together.”
Rep. Kevin Koester, R-Ankeny, says this year’s budget cuts will be historical.
“These budget cuts are the most drastic that we’ve seen,” he said. “Recently we haven’t enacted change that should have brought the budget in line, but I believe we can this year. We’re either going to pay the piper or indebt the taxpayer more.”
House and Senate Democratic leaders have already vowed not to increase taxes this year but have stressed that everything is on the table when it comes to budget cuts. Officials do say they will try to limit the severity of the cuts to job-creation programs, education and health care. Iowans have already felt the pinch when Culver announced in December 2008 that more than $178 million in budget cuts, including a 1.5 percent across-the-board reduction, would take affect Jan. 1, 2009. Most of those cuts came from state agency budgets. On Dec. 16, 2009, Culver signed Executive Order 20, which enacted the Executive Branch cost-saving recommendations in the Iowa Efficiency Review. The order has the potential to save Iowa $128.1 million next year and $713.7 million over five years.
“These are common-sense solutions to finding cost savings and efficiency in state government,” said Culver, in a recent press release. “I want to make clear that this is just the beginning in our efforts to reform state government and find efficiencies in every state department.”
Price agrees.
“The Governor believes that during these times of economic hardship, we also have the opportunity to do the difficult work and find ways to make state government more efficient,” Price said. “The Efficiency Review identified 90 different ideas that will help save taxpayers more than $1 billion while providing the essential services that Iowans rely upon. Some of these ideas are simple, and some will be difficult…but he is looking forward to working with the legislatures on enacting other cost-saving measures.”
Decreasing tax revenues forced cuts in the budget, reducing general fund spending from $5.77 billion to $5.23 billion. Lawmakers have approximately $140 million in federal stimulus money to help balance next year’s budget and will most likely pull a possible $250 million from cash reserves.
Lawmakers such as House Majority Leader Kevin McCarthy, D-Des Moines, says government reorganization will save the state another $100 million to $150 million. According to the Iowa General Assembly Web site, the State Government Reorganization Commission considers the option for reorganizing government “to improve efficiency, modernize processes, eliminate duplication and outdated processes, reduce costs and increase accountability.”
The Committee is comprised of five individuals from the Senate and from the House. On the technology front, both Republicans and Democrats are considering consolidating e-mail systems, merging technology systems and outsourcing data storage in an effort that could save approximately $60 million.
State tax credits
One option lawmakers are looking to balance the budget is to review the state’s 36 tax credits. On Nov. 19, 2009, Culver ordered a review of the tax credit incentives after allegations of misconduct such as purchasing luxury vehicles and a feather bed for personal use. The recent allegations resulted in the Sept. 18, 2009, resignation of Mike Tramontina as director of the Iowa Department of Economic Development, and the state’s film manager, Tom Wheeler, who was placed on paid administrative leave and eventually fired.
“Iowans have lost their confidence in the state’s priority to run the state tax credits correctly,” Koester said. “And they should. I’m not pointing fingers at one department or one leader, but it wasn’t run correctly, and we must fix that.”
As of September, four movies were being shot in Des Moines. Producers say they have made the trek to Iowa because of the tax incentives and low production costs compared to California. The program has pumped millions into the state while also creating hundreds of jobs.
Culver asked the Directors of the six state agencies that oversee the tax credit programs to submit a review of their respective department’s tax credit programs. The panel held two public meetings to discuss the review in Des Moines and Cedar Rapids.
“The tax credits have to be looked at — all of them,” said Sen. Dick Dearden, D-Des Moines. “I’ve not been a fan of tax credits in the past, so I’m not sure what we’re going to do with them.”
Gun rights
A recent update of two proposals by the National Rifle Association (NRA) has made its way to the capitol, asking for state lawmakers to consider gun-rights legislation. One proposal would require employers to either allow employees to lock guns in their cars in company lots, or to provide gun safes for them. The other proposal deals with changing Iowa’s laws on how sheriffs statewide must issue permits to carry a concealed weapon. Known as“shall issue” vs. “may issue,” sheriffs statewide would have to follow identical rules and deny a permit only under limited circumstances.
Grassroots gun groups like Iowa Carry agree with the NRA’s work.
“Iowa Carry believes that the legislation being pushed forward by the National Rifle Association provides a fair balance between the current process in Iowa (discretionary “may issue”) and a hard-line Constitutional approach where no permit and no training is required to carry a firearm outside the home,” said President Sean McClanahan. No sheriff should have the ability to deny a law-abiding citizen the right to carry a firearm for self-defense outside of the home.”
State legislators believe the second proposal has a chance at passage. Currently, four other states — Utah, Florida, Arizona and Louisiana — have made it illegal for employers to prohibit workers from storing guns in cars in company parking areas.
“Overall, we believe there is a good chance the NRA’s proposed legislation will find a favorable response from the Iowa Legislature,” Sean said. “The NRA lobbyist has been talking to key senators and representatives, as have members of Iowa Carry. We know the Legislature will be focused on budget-related items this year, but the preliminary feedback that we have been receiving is generally positive.”
Election year
As if the 83rd General Assembly won’t already be filled with the stress of how to balance the state’s budget, lawmakers will also be confronted with the fact that 2010 is an election year. In November, individuals such as Sen. Charles Grassley, Roxanne Conlin, Christopher Reed, Bob Vander Plaats, Terry Branstad and Culver will put their names on the ballot to either be elected or re-elected to office.
Conlin has put in her bid to be a senator, while Reed is running for Congress. Republican gubernational candidate Bob Vander Plaats, R-Sioux City, will try his hand at a third consecutive attempt to become governor. But the man grabbing much of this year’s governor’s race is former Gov. Branstad, R-Des Moines. Branstad recently retired from serving as President of Des Moines University to once again try his luck at winning the party’s nomination. Branstad served as Governor of Iowa from 1983 to 1999. All indications show that Culver faces a steep battle against Branstad, as Iowa has not removed a sitting governor since 1962.
“Politics always play a factor in the legislature, but Gov. Culver believes that our challenges are bigger than any one party,” Price said. “He is hoping that legislators from both sides of the aisle will put aside partisan differences and work together to build a bright future for Iowa.”
Koester has high optimism for everyone to get along when the session begins Jan. 11.
“I certainly hope that an election year won’t play a part in legislators’ decisions,” Koester said. It’s not the right thing to do — it’s sick. I know some people aren’t going to agree, but I’m hoping this session allows us to reach across the aisle and cooperate. My anticipation is there will be a bipartisan focus, and I believe there will be a better effort to have a good common ground to do what’s best for Iowans.” CV
Sidebar:
Legislative and budget terms
Act — A bill or certain type of joint resolution, which is passed by both houses of a Legislature, has been enrolled, certified, approved by the Governor, or passed over the Governor’s veto and published.
Bill — Legislative proposal originating in either house, normally proposing a change in the statues requiring passage by both houses of the Legislature and approval by the Governor in order to be effective.
Committee — A body of appointed members designated to consider and make recommendations concerning disposition of bills, resolutions, and other related matters within a particular subject area.
Fiscal year — The 12-month financial period used for recordkeeping, budgeting, appropriating, revenue collecting, and other aspects of fiscal management. The fiscal year of the State of Iowa is July 1 to June 30.
House — One of two separate bodies of elected members who meet together as the General Assembly to exercise their constitutional law-making powers.
Joint session — A combined meting of the Senate and House, usually in the House Chamber.
Precedent — The body of parliamentary law, apart from the rules.
Veto — An action taken by the Governor to prevent the enactment of an entire bill.
Source: Iowa General Assembly
Caption: Gov. Chet Culver has until Feb. 1 to share his proposed budget with state lawmakers. Photo courtesy of Legislative Information Office
Caption: On top of dealing with the state’s problems, Gov. Chet Culver faces a tough re-election bid.
Photo courtesy of Legislative Information Office
Caption: Gov. Chet Culver recently signed an executive order with 40 cost-saving recommendations that he believes will help balance the state’s budget crisis. Photo courtesy of Legislative Information Office
