Iowa state budget (2010-2011)
- 1 Fiscal Year 2011 State Budget
- 2 State Budget in Prior Years
- 3 Budget background
- 4 2009-2010 budget crisis
- 5 Accounting principles
- 6 Budget transparency
- 7 See also
- 8 External links
- 9 Additional Links
- 10 References
Going into the fiscal year the state had a total state debt of $6,841,508,016, when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.
|Total spending||Human services||Education||Protection||Administration|
Fiscal Year 2011 State Budget
The state was expected to had a surplus in the range of $500 million to $700 million for FY2011 and on April 18, 2011, both chambers of the legislature passed a plan unanimously to use that money to pay for tax cuts and programs favored by both parties. The first $60 million would create a fund for unspecified tax cuts, $18 million was go to pay legal bills for poor defendants, $27 million would go towards mental health, prisons and community colleges and another $20 million would be used to reduce the waiting list to get into mental health treatment programs.
With days left in office in January 2011, Gov. Culver ordered $83.7 million in cuts to balance the FY2011 budget, using authority granted by the legislature in 2010. He also said he would use $5 million from the state's cash reserve to restore some of the funding to the departments of corrections, human services and public safety.
The Revenue Estimating Conference announced in early December 2010 that the state would likely collect about $34 million more in taxes than previously estimated for FY2011 thanks to the improving economy.
Following the shortest state legislative session in nearly four decades, the Iowa legislature adjourned after passing a balanced budget. The budget increased property taxes and made cuts to state government. The state faced a budget shortfall of approximately $1 billion for FY 2011 in addition to $415 million for the 2010 budget. To address the shortfall faced by the state, the Legislature changed purchasing and computer operations, merged some small agencies, and restructured operations in some larger departments. When combined with an early retirement package offered to state employees, $270 million were saved.
Of the expenses in FY2011 state budget, $725 million of them were to be paid for with one-time sources of income, the majority of which were federal stimulus funds.
A review by the nonpartisan Iowa Taxpayers Association concluded that the FY2011 state budget was projected to spend more money than was collected via tax revenue. The group also expressed concern over lawmakers' funding ongoing expenses with time-limited or one-time revenue sources topping $600 million.
State Budget in Prior Years
The state ended FY2010 with a nearly $336 million surplus and one of the largest balances in state history. The surplus was in addition to $419 million in various “rainy day” or emergency accounts. Gov. Culver said that those figures showed that the budget was balanced, but Senate Republican Leader Paul McKinley challenged that assessment, noting that the governor failed to mention the one-time money spent for ongoing expenses and funding shifts.
The Iowa General Assembly passed a reduced budget for FY 2010 of $5.77 billion compared to $5.9 billion for FY 2009. Gov. Chet Culver announced October 8, 2009 he was implementing a 10% across-the-board cut in state government spending. Revenue estimates projected declines in state revenue of 8.4%, or $414.9 million, compared to last year. The preliminary plans included a proposed reduction of 1,321 state government positions, including 791 layoffs and eliminating 529 vacant positions. The 10% cut represents a reduction of $564.4 million.
Reduced revenue projections in April of 2009 led Gov. Culver to revise and cut 7.9% from his FY 2010 budget recommendation to the Legislature during its session.
- See also:Iowa state budget
In Iowa state agencies prepare and submit requests by October 1st for the following fiscal year. On December 15 the Revenue Estimating Conference, comprised of the Governor, the director of legislative services agency, and a third member agreed to by the other two, meet to estimate the revenue for the upcoming fiscal year. The Governor then reviews the budget requests by state agencies, conducts public hearings and submits recommendations to the General Assembly in January. From January through February the legislature hosts a variety of joint meetings. Once the budget bill was approved the bill was submitted to the Governor, who had line-item veto authority in appropriations bills.
Iowa's fiscal year begins July 1 and ends June 30.
Section 8.31, Code of Iowa, states that if the Governor determines that the estimated budget resources during the fiscal year were insufficient to pay all appropriations in full, the reductions shall be uniform and prorated between all departments, agencies, and establishments upon the basis of their respective appropriations. Gov. Culver ordered a 1.5% reduction of $89.1 million for FY 2009. The FY 2009 budget was reduced in total cuts from $6.13 billion to $5.95 billion. The latest round of cuts for the current fiscal year reduces the FY 2010 General Fund budget to $5.18 billion, $5.77 billion with federal funds.
The following table provides a history of Iowa's general fund ending balances for the past decade:
The following table provides a history of Iowa's expenditures and gross domestic product (GDP).
|Fiscal Year||Expenditures (billions)||GDP (billions)|
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year
2009-2010 budget crisis
- See also: Iowa state budget (2008-2009)
The state of Iowa was currently facing a budget shortfall of approximately $1 billion shortfall for FY 2011 in addition to $415 million for the current budget. In October 8, 2009 the governor announced that he was implementing a 10% across-the-board cut in state government spending. Revenue estimates projected declines in state revenue of 8.4%, or $414.9 million, compared to last year. The preliminary plans included a proposed reduction of 1,321 state government positions, including 791 layoffs and eliminating 529 vacant positions.
In February 2010 a package for early retirement incentives for state workers was given final approval by the Senate and the House. The plan was estimated to save the state $60 million a year and reduce the budget shortfall. Additionally, lawmakers were considering a plan to "streamline state government." According to officials the reform could save the state $300 million in the first year of the 5-year effort.
The Iowa State Auditor was David A. Vaudt. The Auditor of State was a constitutional official, elected every four years. The Auditor was required to annually make a complete audit of the books, records and accounts of every department of state government. Iowa’s audit reports were published online.
The Iowa Department of Administrative Services (DAS) was created on July 1, 2003. Ray Walton became Chief Operating Officer of the Department of Administrative Services in 2007. DAS Core consists of:
- Finance and Operations
- Legal Counsel
- Legislative Liaison
- Marketing and Communications
Economic stimulus transparency
- See also: Iowa Open Records Law
- Iowa would receive approximately $209 million from the federal government under HR 15486, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010. Approximately $128 million of the money was intended for the state’s Medicaid program.
- It was estimated that Iowa would receive at least $1.5 billion in federal funding.
- There was an economic recovery website for Iowa.
The following table was helpful in evaluating the level of transparency provided by a state spending and transparency database:
|State Database||Searchability||Grants||Contracts||Line Item Expenditures||Dept/Agency Budgets||Public Employee Salary|
Support for creation of the database
Although State Representative Jamie Van Fossen supported transparency legislation, House File 2439 failed to pass, according to the Public Interest Institute's October edition of the "Iowa Transparency Newsletter."
Although there was no state spending database in Iowa, there were several links (provided below) related to Iowa's level of transparency:
Iowa's Des Moines Register maintains a searchable public employee salary database.
Additionally, the Department of Administrative Services posted some salary data online.
- State Budget Solutions, Iowa
- Model transparency legislation from the American Legislative Exchange Council was available at this link.
- Public Interest Institute
- Iowa Department of Management
- Public Employee Salary Database
- Business Week,"Iowa lawmakers debate gov't efficiency effort," February 1, 2010
- Governor Chet Culver,"2010 State of the State Address," January 12, 2010
- The Iowa Independent,"Gas tax showdown on the horizon," February 9,2009
- IowaPolitics.com "Parties offer competing views of the session as Legislature adjourns" March 31, 2010
- State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
- Iowa Publications, FY2011 Budget
- USA Spending, State Guesstimated* Government Spending
- FY2011 CAFR
- Businessweek "Iowa lawmakers agree to spend surplus on tax cuts" April 18, 2011
- Bloomberg "Iowa governor orders $83.7 million spending cut" Jan. 4, 2011]
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- KCCI,"$1 Billion Iowa Budget Shortfall Projected," November 25, 2009
- Business Week "A look at Iowa legislative session" March 30, 2010
- DesMoinesRegister.com "Big revenue gap awaits lawmakers next session" April 5, 2010
- The Waterloo Cedar Falls Courier "State budget plan gets mixed review" July 18, 2010
- The Des Moines Register "Culver cheers: Iowa’s budget posts one of largest ending balances in history" Sept. 30, 2010
- The Sioux City Journal "Iowa budget surplus parks campaign sparring" Oct. 1, 2010
- Iowa Graybook, “FY 2010 Appropriations Tracking,” July 14, 2009
- Gov. Culver Press Release , “Governor Culver’s Statement on Balancing the State Budget,” October 8, 2009
- Gov. Culver Press Release , “Preliminary Departmental Plans Released on State Budget Cuts,” October 21, 2009
- Iowa Legislative Services Agency, “Across-the-Board Reductions,” October 2009
- Gov. Culver Press Release , “Governor Culver: During Tough Times, We Must Be Fiscally Responsible,” April 3, 2009
- State of Iowa,"Iowa state budget process," January 1,2006
- Iowa Legislative Services Agency, “Across-the-Board Reductions,” October 2009
- US Government Spending,"Iowa State and Local spending," accessed February 27,2009
- Business Week,"Iowa Senate gives final OK to retirement plan," February 4, 2010
- Omaha World-Herald,"Iowa budget could be reframed," January 25, 2010
- Associated Press,"Culver: Effort would save $200 million or more," January 25, 2010
- audit reports
- Iowa State Auditor Web site, retrieved October 22, 2009
- Iowa Department of Administrative Services Web site, retrieved October 22, 2009
- Chicago Tribune, Branstad signs budget web site into law, March 7, 2011
- Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
- IowaPolitics.com "Gov. Culver: Hails House approval of aid to Medicaid, teachers" Aug. 11, 2010
- H.R. 1586
- Wall Street Journal, "Stimulus Spending by State"
- Economic Recovery - Iowa
- House File 2439
- Des Moines Register searchable public employee salary database
- Department of Administrative Services Salary Data