Difference between revisions of "Iowa state budget"

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{{budget infobox2|
{{budget infobox|
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| state = Iowa  
state = Iowa |
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| image = Flag of Iowa.png|
image = Flag of Iowa.png|
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| budgetcal =Annual
budgetcal = Annual |
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| fiscalyear =2014
fiscalyear = 2013 |
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| credit=AAA
datelaw= June 7, 2012 |
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| percentchangedr =   
lasteraltered = |
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| expenses =$6.2 billion  
revenue =  |
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| all funds expenses =$19.6 billion
percentchangedr =  |
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| spending change =3.2%
expenses = $6.244 billion|
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| change =up
all funds expenses = |
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| governor = Terry Branstad
percentchanged = |
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| % federal = 33.27%
}}
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| state debt = $37,783,060,000
[[Iowa]] operates on an annual budget cycle. Its fiscal year starts on July 1.
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| per cap debt = $12,290
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}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Iowa]], including:
 +
* A summary of the budget drafting process
 +
* Trends in expenditures and revenues
 +
* Current and past fiscal year budget developments
 +
* Financial transparency measures
  
On June 7, 2012, Gov. Branstad finalized the a $6.244 billion FY2013 budget.<ref>[http://www.kcrg.com/news/local/Branstad-Finalizes-Fiscal-2013-State-Budget-Possible-DHS-Layoffs-Loom-157998025.html KCRG.com "Branstad Finalizes Fiscal 2013 State Budget; Possible DHS Layoffs Loom" June 7, 2012]</ref>
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Between fiscal year 2009 and fiscal year 2013, Iowa's total expenditures increased by approximately $2 billion, from $17.6 billion in 2009 to $19.6 billion in 2013. This represents a 10.2 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
As of August 2012, Iowa has a total state debt of approximately $25,248,915,000, when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the budget gap.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillion State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The debt is only slightly less than the prior year's total of $25,989,741,000.<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref>
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==Budget process==
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{{Iowa budget process}}
  
As of October 2012, Iowa's total state debt per capita is $8,245.06.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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==Expenditures==
 +
===Definitions===
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{{Budget types background}}
 +
===2013 expenditures===
 +
[[File:Iowa total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
  
According to a 2012 study by 24/7 Wall Street, Iowa is the fifth best run state taking into account debt per capita, budget deficits, unemployment, median household income, and the percentage of the percentage of the population below the poverty line. The best run state is North Dakota and the worst run state is California.<ref> [http://finance.yahoo.com/news/the-best-and-worst-run-states-in-america-150415625.html/ Yahoo, The Best- and Worst-Run States in America, Nov. 27, 2012] </ref>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures**
 +
|-
 +
|'''Iowa''' || '''$6,231''' || '''$5,682''' || '''$7,539''' || '''$157''' || '''$19,609''' || '''$6,345.10'''
 +
|-
 +
|[[Kansas state budget|Kansas]] || $6,198 || $3,599 || $4,193 || $415 || $14,405 || $4,977.61
 +
|-
 +
|[[Minnesota state budget|Minnesota]] || $20,056 || $8,637 || $6,263 || $810 || $35,766 || $6,598.43
 +
|-
 +
|[[Missouri state budget|Missouri]] || $8,022 || $7,209 || $7,712 || $0 || $22,943 || $3,795.89
 +
|-
 +
|[[South Dakota state budget|South Dakota]] || $1,302 || $1,487 || $1,307 || $35 || $4,131 || $$4,670.31
 +
|-
 +
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
:: ''See also: [http://www.statebudgetsolutions.org/state/detail/iowa The Iowa State Budget on State Budget Solutions]
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===Expenditures by function===
 +
[[File:Iowa expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
State expenditures in Iowa can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
  
==Federal Aid to State Budget==
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{| class="wikitable" style="text-align:center; width:55%;"
 
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
The chart below represents how much of the state’s budget comes from the federal government.<ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation'' "Federal Aid to State Budgets," accessed August 26, 2013]</ref> The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
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{| class="wikitable sortable"
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| align="center" style="background:#f0f0f0;"|'''State'''
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| align="center" style="background:#f0f0f0;"|'''2008'''
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| align="center" style="background:#f0f0f0;"|'''2009'''
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| align="center" style="background:#f0f0f0;"|'''2010'''
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| align="center" style="background:#f0f0f0;"|'''2011'''
+
 
|-
 
|-
| Iowa || 30.84% (#21) || 34.9% (#20) || 39.4% (#18) || 38.92% (#16)
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! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|'''Iowa''' || '''16.8%''' || '''25.0%''' || '''0.6%''' || '''19.6%''' || '''2.7%''' || '''7.5%''' || '''27.8%'''
 +
|-
 +
|[[Kansas state budget|Kansas]] || 25.8% || 16.9% || 0.3% || 18.6% || 2.5% || 8.8% || 27.1%
 +
|-
 +
|[[Minnesota state budget|Minnesota]] || 23.8% || 9.7% || 1.4% || 27.6% || 1.5% || 8.3% || 27.7%
 +
|-
 +
|[[Missouri state budget|Missouri]] || 22.6% || 4.7% || 0.7% || 35.0% || 2.6% || 10.4% || 23.9%
 +
|-
 +
|[[South Dakota state budget|South Dakota]] || 14.3% || 17.7% || 0.8% || 20.9% || 2.7% || 15.9% || 27.7%
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 
|}
 
|}
 
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
 
  
==Fiscal Year 2013 State Budget==
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===Expenditure trends===
 +
From 2008 to 2012, expenditures on elementary and secondary education, higher education and public assistance decreased. During the same time period, expenditures on Medicaid, corrections and transportation increased. The table below details changes in expenditures from 2008 to 2012.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
  
Because Iowa took a two year approach to the state budget in FY2012, legislators had already allocated 86 percent of the funds for FY2013.<ref>[http://www.desmoinesregister.com/article/20111124/NEWS10/311240051/-1/gallery_array/Budget-concerns-highlighted The Des Moines Register "Budget concerns highlighted" Nov. 23, 2011]</ref>  On June 7, 2012, Gov. Branstad finalized the a $6.244 billion FY2013 budget.<ref>[http://www.kcrg.com/news/local/Branstad-Finalizes-Fiscal-2013-State-Budget-Possible-DHS-Layoffs-Loom-157998025.html KCRG.com "Branstad Finalizes Fiscal 2013 State Budget; Possible DHS Layoffs Loom" June 7, 2012]</ref>
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|2012 || 16.8% || 25.0% || 0.6% || 19.6% || 2.7% || 7.5% || 27.8%
 +
|-
 +
|2011 || 17.7% || 24.6% || 0.7% || 19.4% || 2.2% || 7.8% || 27.6%
 +
|-
 +
|2010 || 17.3% || 24.4% || 0.7% || 18.6% || 2.4% || 9.1% || 27.5%
 +
|-
 +
|2009 || 17.6% || 25.6% || 0.7% || 17.9% || 2.4% || 7.8% || 28.0%
 +
|-
 +
|2008 || 18.1% || 25.2% || 0.8% || 17.9% || 2.6% || 6.4% || 29.0%
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''-1.30%''' || align="center" style="background-color:black; color:white"|'''-0.20%'''|| align="center" style="background-color:black; color:white"| '''-0.20%''' || align="center" style="background-color:black; color:white"|'''1.70%''' ||align="center" style="background-color:black; color:white"| '''0.10%''' || align="center" style="background-color:black; color:white"|'''1.10%''' || align="center" style="background-color:black; color:white"|'''-1.20%'''
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
State Auditor David Vaudt said in July 2012 that the state faces a $161 million “spending gap” compared to available state revenues.<ref name=qct>[http://qctimes.com/news/state-and-regional/iowa/vaudt-sees-good-and-bad-in-iowa-budget-picture/article_85dbc9fc-c9e4-11e1-971e-001a4bcf887a.html The Quad City Times "Vaudt sees good and bad in Iowa budget picture" July 9, 2012]</ref>
+
==Revenues==
 +
===2013 revenues===
 +
[[File:Iowa GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
Budget drafted relied on $71 million in one-time sources.<ref name=qct/>
+
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|'''Iowa''' || '''$2,109''' || '''$3,315''' || '''$448''' || '''$120''' || '''$645''' || '''$6,637''' || '''$2,147.61'''
 +
|-
 +
|[[Kansas state budget|Kansas]] || $2,525 || $2,931 || $371 || $0 || $514 || $6,341 || $2,191.12
 +
|-
 +
|[[Minnesota state budget|Minnesota]] || $4,817 || $8,649 || $1,165 || $39 || $2,786 || $17,456 || $3,220.44
 +
|-
 +
|[[Missouri state budget|Missouri]] || $1,872 || $5,489 || $415 || $0 || $307 || $8,083 || $1,337.32
 +
|-
 +
|[[South Dakota state budget|South Dakota]] || $776 || $0 || $0 || $1 || $587 || $1,364 || $1,614.44
 +
|-
 +
| align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
'''Legislative Proposed Budgets'''
+
===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
The House and Senate proposed budgets differed dramatically on several issues.
+
{| class="wikitable" style="text-align:center; width:65%;"
 
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, Iowa ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
* '''Education'''  The Senate proposed spending $890.6 million, an increase of $79.4 million over FY2012, The House proposed spending $774.3 million, a $37 million cut and the differences are in Regents and community college spending;
+
|-
 
+
! valign="bottom" style="background-color:#444; color: white;" | Year
* '''Infrastructure''' While both budgets increase infrastructure funding, the House proposes spending $80.7 million, whereas the Senate would spend $56.5 million;
+
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 
+
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
* '''Corrections'''  The House budget cuts $1.6 million from corrections compared with FY2012; the Senate's budget would increase corrections funding by $15.4 million;
+
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 
+
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
* '''Economic Development'''  Both houses increase funding for economic development and labor programs, but the Senate would do so by $61.2 million and the House would do so by $28.9.<ref>[http://www.desmoinesregister.com/article/20120409/NEWS09/304090030/1116/JUICE05/?odyssey=nav|head The Des Moines Register "Legislators far apart on budget" April, 2012]</ref>
+
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 
+
! valign="bottom" style="background-color:#444; color: white;" | Total
'''Governor's Proposed Budget'''
+
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 
+
|-
Gov. [[Terry E. Branstad|Terry Branstad]] proposed a $6.2 billion budget for FY2013, which includes those prior allocations and increasing spending by 3.8%, or $230 million, over FY2012.  The increase is based on projections call for state tax collections to grow 4.2 percent in FY2013.  Half of state revenues will come from income taxes, and the sales tax will generate about 34 percent of revenue.  
+
|2013 || $2,109 || $3,315 || $448 || $120 || $645 || $6,637 || $2,147.61
<ref name=calls>[http://www.chicagotribune.com/news/chi-ap-ia-branstad-iowabudg,0,930370.story The Chicago Tribune "Iowa Gov. Branstad calls for $6.2 billion budget" Jan. 10, 2012]</ref>  The governor's proposed budget can be found [http://www.dom.state.ia.us/index_files/FY2013_BiB_to_Iowa_Access.pdf here].
+
|-
 
+
|2012 || $2,052 || $3,030 || $426 || $142 || $661 || $6,311 || $2,052.33
The Governor's proposed budget break down:<ref name=calls/>
+
|-
{| class="wikitable"
+
|2011 || $1,941 || $2,852 || $251 || $133 || $722 || $5,899 || $1,925.20
 
|-
 
|-
! Category
+
|2010 || $2,243 || $2,633 || $189 || $121 || $448 || $5,634 || $1,847.02
! % of Spending
+
 
|-
 
|-
|Education||58
+
|2009 || $2,284 || $2,720 || $272 || $116 || $542 || $5,934 || $1,972.83
 
|-
 
|-
|Health and Human Services||26
+
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''-7.66%''' || align="center" style="background-color:black; color:white"|'''21.88%'''|| align="center" style="background-color:black; color:white"| '''64.71%''' || align="center" style="background-color:black; color:white"|'''3.45%''' ||align="center" style="background-color:black; color:white"| '''19.00%''' || align="center" style="background-color:black; color:white"|'''11.85%''' || align="center" style="background-color:black; color:white"|'''8.86%'''
 
|-
 
|-
|Judicial and Corrections Systems || 10
+
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 
|}
 
|}
  
'''K-12 Education'''
+
==State budgets by year==
 +
{{See budget bill|Link=[https://governor.iowa.gov/2013/06/gov-branstad-signs-nine-bills-into-law-3/ Signed budget bills for FY 2014]}}
 +
===Fiscal year 2014===
 +
{{Budget bill box
 +
|State = Iowa
 +
|Year = 2014
 +
|Link =http://legiscan.com/IA/bill/HF648/2013 HB 648 (This is only one of nine bills comprising the budget)
 +
|Introduced =May 8, 2013
 +
|Days =
 +
|State House =May 22, 2013
 +
|Vote lower house =95-0
 +
|State Senate =May 22, 2013
 +
|Vote upper house =28-22
 +
|Conference =
 +
|Conference upper house vote =
 +
|Conference lower house vote =
 +
|Governor = [[Terry Branstad]]
 +
|Signed =June 20, 2013
 +
|Vetoed = Item veto
 +
}}
  
Gov. Branstad and top education officials have said they plan to increase the amount spent on school funding, which in FY2012 accounted for 58% of the state budget. His education reform plan would raise the pay of first-year teachers, require third-graders to pass a literacy test and reward innovative schools with extra money.<ref name=pie>[http://www.desmoinesregister.com/article/20111016/NEWS02/310160049/1004/Give-bigger-piece-pie-schools-Branstad-says The Des Moines Register "Give bigger piece of pie to schools, Branstad says" Oct. 15, 2011]</ref> The governor said he did not have a specific number in mind, but he would have a target prior to lawmakers returning in January 2012.<ref>[http://www.forbes.com/feeds/ap/2011/10/04/general-ia-branstad-schools_8716219.html Forbes "Lawmakers say they're open to more school spending" Oct. 4, 2011]</ref> Some in the state question whether the plan will be fiscally possible.<ref name=pie/>
+
Iowa's FY 2014 budget set up the state general fund with approximately $6.48 billion, which is about a three percent increase compared to FY 2013. This figure was only $6 million less than [[Governor of Iowa|Governor]] [[Terry Branstad|Terry Branstad's]] proposed general fund budget that was unveiled in January 2013.<ref>[http://siouxcityjournal.com/news/local/state-and-regional/iowa-lawmakers-governor-settle-on-billion-overall-fiscal-budget-number/article_e8f25d11-bff0-5f97-91ae-f9cc46e0e2b4.html ''Sioux City Journal'', "Iowa lawmakers, governor settle on $6.483 billion overall fiscal 2014 budget number," May 14, 2013]</ref> The budget was signed into law by the governor on June 20, 2013.<ref>[https://governor.iowa.gov/2013/06/gov-branstad-signs-nine-bills-into-law-3/ ''Iowa.gov'', "Gov. Branstad signs nine bills into law," accessed April 23, 2014]</ref>
  
'''Higher Education'''
+
===Fiscal year 2013===
 +
::''See also: [[Iowa state budget (2012-2013)]]
  
The governor's proposed budget includes $23 million increase to the budget for the state’s three public universities. House Republicans, however, called for a $31 million decrease from FY2012.<ref>[http://www.stateline.org/live/details/story?contentId=639299 Stateline "Higher education funds begin slow recovery" March 16, 2012]</ref>
+
===Fiscal year 2012===
 +
::''See also: [[Iowa state budget (2011-2012)]]
  
'''Revenue'''
+
===Fiscal year 2011===
 +
::''See also: [[Iowa state budget (2010-2011)]]
  
The governor proposed reducing commercial and industrial property taxes by 40 percent over eight years, saying the levies are the second- highest in the U.S. and are costing the state jobs.<Ref>[http://www.businessweek.com/news/2012-01-31/governors-seeking-jobs-offer-tax-breaks-as-budget-woes-ease.html Businessweek "Governors Seeking Jobs Offer Tax Breaks as Budget Woes Ease" Jan. 31, 2012]</ref>
+
===Fiscal year 2010===
 +
::''See also: [[Iowa state budget (2009-2010)]]
  
==Fiscal Year 2012 State Budget==
+
==Historical spending==
* '''See past [[Archived Iowa state budgets|state budgets]]'''
+
State budget historical spending below was compiled by the [[National Association of State Budget Officers]]. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).<ref name=expenditures2013/><ref name=expenditures2012/>
 +
{{State budget historical spending
 +
|State=Iowa
 +
|totalbudgets= 3
 +
|2011-2012genfund=6010
 +
|2011-2012otherfund=6072
 +
|2011-2012fedfund=6551
 +
|2011-2012bonds=307
 +
|2011-2012budgettotal=18940
 +
|2010-2011genfund=5354
 +
|2010-2011otherfund=6258
 +
|2010-2011fedfund=6147
 +
|2010-2011bonds=229
 +
|2010-2011budgettotal=17988
 +
|2009-2010genfund=5302
 +
|2009-2010otherfund=6050
 +
|2009-2010fedfund=6174
 +
|2009-2010bonds=111
 +
|2009-2010budgettotal=17637
 +
}}
  
On June 30, 2011, the last day of the fiscal year, [[Iowa]] lawmakers negotiated a $5.99 billion budget deal after Republican legislators backed down from proposed abortion restrictions. The compromise continues abortion funding, while requiring hospital staff to inform pregnant women of other options such as adoption and give them an opportunity to see an ultrasound. With the agreement in place, the [[Iowa General Assembly|legislature]] completed a $5.99 billion state budget within hours of the start of fiscal year 2012.<ref>[http://www.reuters.com/article/2011/06/30/us-iowa-abortion-budget-idUSTRE75T6MR20110630 Reuters "Iowa budget deal headed toward adoption" June 30, 2011]</ref> The budget includes more than $2.3 billion in federal funds for Medicaid.<ref name=auditor/>
+
==State debt==
 
+
According to a January 2014 report by the nonprofit organization [[State Budget Solutions]], Iowa had a state debt of over $37 billion. Its state debt per capita was $12,290. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded [[public pensions]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
In August 2011, Iowa Auditor of State David Vaudt said that despite the $5.99 billion cap, the state spending actually totals $6.4 billion when factoring in spending that was shifted to accounts other than the state general fund. Vaudt added that the use of one-time money declined 92 percent.<ref name=auditor>[http://www.desmoinesregister.com/article/20110830/NEWS/308300030/Auditor-Budget-reduced-use-of-gimmick?odyssey=tab|topnews|text|News The Des Moines Register "Auditor: Budget reduced use of gimmick" Aug. 29, 2011 2011]</ref>
+
{{State debt box
 +
|State = Iowa
 +
|totaldebt=$37,783,060,000
 +
|totaldebtrank=35
 +
|percapdebt=$12,290
 +
|percapdebtrank=38
 +
|expenditures =$12,082,000,000
 +
|expendituresrank =38
 +
}}
  
Despite the session being the third longest legislative session in state history, lawmakers did not approve a property tax overhaul that all agreed is needed because commercial property taxes in Iowa are out of line with neighboring states.<ref name=beaumont/>
+
===Public pensions===
 +
::''See also: [[Iowa public pensions]] and [[Iowa public employee salaries]]''
  
Spending on K-12 education accounts for 58% of the state budget.<ref>[http://www.forbes.com/feeds/ap/2011/10/04/general-ia-branstad-schools_8716219.html Forbes "Lawmakers say they're open to more school spending" Oct. 4, 2011]</ref>  Medicaid accounts for nearly 24% of the state budget.<ref>[http://www.desmoinesregister.com/article/20111016/NEWS02/310160049/1004/Give-bigger-piece-pie-schools-Branstad-says The Des Moines Register "Give bigger piece of pie to schools, Branstad says" Oct. 15, 2011]</ref>
+
A 2012 report from the Pew Center on the States noted that [[Iowa public pensions|Iowa's pension system]] was funded at 81 percent at the close of fiscal year 2010, just above the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as being in need of "improvement."<ref name=iowapew>[http://www.pewstates.org/research/state-fact-sheets/widening-gap-update-iowa-85899399310 ''Pew Center on the States'' "Widening Gap Update: Iowa," June 18, 2012]</ref>
  
===Negotiations===
+
The funding ratio for the state's pension systems decreased from 89.57 percent in fiscal year 2007 to 79.10 percent in fiscal year 2012, a 10.47 percent drop. Likewise, unfunded liabilities increased from approximately $3.7 billion in fiscal year 2007 to more than $6.8 billion in fiscal year 2012.
  
Gov. [[Terry E. Branstad|Terry Branstad]] insisted on limiting state spending to $5.9 billion and, after initially resisting, Democrats agreed to that spending limit on June 13, 2011. The governor then announced that he would not agree to any budget that did not include a large property tax cut.<ReF>[http://www.businessweek.com/ap/financialnews/D9NR54TG0.htm Businessweek "Branstad: No budget deal without property tax cut" June 13, 2011]</ref>
+
===Credit ratings===
 +
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
  
'''Annual v. Biennial Budgeting'''
+
The table below lists the Standard and Poor's credit ranking for Iowa from 2001 to 2012 (grades from surrounding states are provided for additional context).<ref name=credit/>
  
[[Terry E. Branstad|Gov. Terry Branstad]] said that he would veto any one-year budget bills that came from the legislature and did so on April 12, 2011, when he vetoed a bill providing transportation funding.  In his veto message, the governor said that he has submitted legislation to require lawmakers and the governor to adopt a biennial budget instead of the annual budget the state has used since 1983.<ref>[http://www.desmoinesregister.com/article/20110413/NEWS10/104130348/-1/GETPUBLISHED03/Branstad-stands-fast-vetoes-budget The Des Moines Register "Branstad stands fast, vetoes budget" April 13, 2011]</ref>Gov. Branstad said he would accept nothing less than a fully funded, two-year state budget.  The Governor has noted that State officials already have a two-year contract with public employees under an agreement between former Democratic Gov. Chet Culver.<reF>[http://www.desmoinesregister.com/article/20110419/NEWS10/104190367/-1/INSIGHT_BOWL/Branstad-adamant-No-one-year-budgets The Des Moines Register "Branstad adamant: No one-year budgets" April 18, 2011]</ref>
+
{| class="wikitable" style="text-align:center; width:55%;"
 
+
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
Senate Majority Leader [[Michael Gronstal|Michael Gronstal]] offered a compromise under which the legislature would approve a full budget for FY2012 and a 50 percent state budget for the second fiscal year, FY2013, with the Iowa Legislature assessing during the 2012 session what the funding level for FY2013 should be.  On April 20, 2011, the governor's office issued a statement  that neither approved nor rejected the compromise.<ref>[http://blogs.desmoinesregister.com/dmr/index.php/2011/04/20/gronstal-offers-option-to-break-budget-gridlock-with-gov-branstad/?odyssey=mod|lateststories Des Moines Register "Sen. Gronstal offers plan to break Iowa budget gridlock" April 20, 2011]</ref>
+
|-
 
+
! valign="bottom" style="background-color:#444; color: white;" |
===Legislative Proposed Budget===
+
! valign="bottom" style="background-color:#444; color: white;" | '''Iowa'''
 
+
! valign="bottom" style="background-color:#444; color: white;" | Kansas
On June 21, 2011,  [[Iowa State Senate|Senate]] Democrats passed six spending measures paying for programs ranging from transportation to economic development.  Most passed with 26 votes in favor.  Democrats control the Senate by a 26-24 margin.  The bills were passed as part of a compromise spending plan that satisfies that Republican desire to cap overall state spending at $5.9 billion. Democrats also agreed to no increase in the next fiscal year in basic state education spending.  Gov. Branstad was not pleased with the plan, which now moves to the [[Iowa House of Representatives|House]].<ref>[Businessweek "http://www.businessweek.com/ap/financialnews/D9O10RJG0.htm" June 22, 2011]</ref> 
+
! valign="bottom" style="background-color:#444; color: white;" | Minnesota
 
+
! valign="bottom" style="background-color:#444; color: white;" | Missouri
The Iowa House of Representative approved a state spending plan of $5.9 billion on June 8, 2011.  The budget decreases commercial property taxes and increases the state's share of local school budgets, effectively using state dollars to replace local property taxes that make up the bulk of school budgets, and will cost $347 million a year when fully implemented.  The budget raises education funding for local schools by 2 percent in the second year of the biennial budget and it includes $35 million to continue preschool programs, which had been a point of much debate.  Republicans initially wanted parents to pay for preschool based on need and pushed for no increase in state spending on local schools.<ref>[http://www.forbes.com/feeds/ap/2011/06/09/business-us-iowa-budget-iowa_8508021.html Forbes "Iowa House approves budget that includes tax cuts" June 9, 2011]</ref>
+
! valign="bottom" style="background-color:#444; color: white;" | South Dakota
 
+
|-
===Governor's Proposed Budget===
+
| 2012 || AAA || AA+ || AA+ || AAA || AA+
 
+
|-
Gov. Branstad's approximately $5 billion proposed budget eliminates at least $700 million in spending and includes the firing hundreds of state workers.<ref name=aides>[http://www.businessweek.com/ap/financialnews/D9L0841O0.htm Businessweek "Aides say Iowa gov's budget cuts at least $700M" Jan. 26, 2011]</ref>  The governor's spokesperson said that the budget would not rely on one-time funding as the prior year's budget did, and would instead be an "honest budget."<ref name=aides/>
+
| 2011 || AAA || AA+ || AAA || AAA || AA+
 
+
|-
The budget he proposed was a biennial budget for FY2012-13.
+
| 2010 || AAA || AA+ || AAA || AAA || AA
 
+
|-
'''Proposed Spending Cuts'''
+
| 2009 || AAA || AA+ || AAA || AAA || AA
 
+
|-
Branstad's budget would reduce funding for preschool assistance for needy families from $74 million to $43 million.  It would also reduce payroll costs at state agencies by $89 million.<ref name=how>[http://money.cnn.com/2011/02/14/news/economy/govenors_cutting_taxes/ MoneyCNN.com "How to fix a budget crisis? Cut taxes!" Feb. 14, 2011]</ref>
+
| 2008 || AAA || AA+ || AAA || AAA || AA
 
+
|-
Branstad proposed a 6 percent cut to higher education for fiscal 2012, despite the fact the state Board of Regents asked for an $18 million increase in funding.<ref> [http://www.dailyiowan.com/2011/03/07/Metro/21848.html/ The Daily Iowan, Iowa Students to Lobby at the Capitol Toady, March 7, 2011] </ref> In Iowa, funding from the state has dropped almost 38 percent, while funding from tuition has grown over 33 percent, according to the Iowa Board of Regents.<ref> [http://www.iowastatedaily.com/news/article_f24110da-4532-11e0-a5d1-001cc4c03286.html/ Iowa State Daily, Budget Cuts Affect Iowa State, Peer Universities, March 3, 2011] </ref>
+
| 2007 || AA+ || AA+ || AAA || AAA || AA
 
+
|-
'''Proposed Tax Cuts'''
+
| 2006 || AA+ || AA+ || AAA || AAA || AA
 
+
|-
Branstad wants to cut the state's corporate income tax -- which currently has the nation's highest top tier at 12% -- in half. And he wants to lower commercial property taxes by 8% a year for five years, with new investment being taxed at only 60% of its valuation immediately.<ref name=how/>
+
| 2005 || AA+ || AA+ || AAA || AAA || N/A
 
+
|-
'''Growing Jobs'''
+
| 2004 || AA+ || AA+ || AAA || AAA || N/A
 
+
|-
Gov. Branstad is unveiling a plan to combat the state's 6.3 percent unemployment rate. He claims his plan of raising the state's gaming tax to 36 percent will have the casinos contribute more to the state's economy By doing so Branstad says the lawmakers can reduce the tax burden on other businesses in the state, which will allow them to hire more staff. Casino managers though say a 14 percent increase from their current tax rate of 22 percent would force them to lay off employees.<ref> [http://www.kmeg.com/Global/story.asp?S=14189969/ KMEG, Jobs for Iowa Could Cause Casino Layoffs, March 4, 2011] </ref>
+
| 2003 || AA+ || AA+ || AAA || AAA || N/A
 
+
|-
Another aspect of Branstad's plan to increase jobs in the state is too reduce commercial property taxes by 40 percent.<ref> [http://www.kdlt.com/index.php?option=com_content&task=view&id=7938&Itemid=57/ KDLT, Iowa Gov. Branstad Stops in Rock Rapids to Talk Jobs, March 4, 2011] </ref>
+
| 2002 || AA+ || AA+ || AAA || AAA || N/A
 
+
|-
'''Criticisms'''
+
| 2001 || AA+ || AA+ || AAA || AAA || N/A
 
+
Branstad is being criticized for double dipping in state funds. As governor Branstad earns a $130,000 salary. He also draws a $50,000 annual pension from a previous positions in the government, including a previous stint as governor. Branstad campaign manager Jeff Boeyink, who is now the governor's chief of staff, told Radio Iowa last April that Branstad was willing to forgo his pension for four years if elected to another term as governor.<ref> [http://www.desmoinesregister.com/article/20110218/NEWS10/102180337/Branstad-won-t-cut-his-salary-to-help-balance-state-s-budget?GETPUBLISHED03wp-content/ Des Moines Register, Branstad Won't Cut His Salary, Feb. 17, 2011] </ref>
+
Democrats called the governor a hypocrite because he's receiving two paychecks from the state and calling for state layoffs.
+
 
+
Iowa legislators are seeking to limit the governor's power to transfer funds within the state budget. Other than governors in Alabama and Michigan, Iowa's governor can move millions of dollars around the budget as they see fit. Legislators fear this thwarts legislative intentions. Legislation introduced in the Iowa legislature would limit the governor's power to shift money to no more than ½ of 1 percent of department transfers, which would be about $6 million on an individual transfer and around a $30 million maximum in the current budget.<ref> [http://blogs.desmoinesregister.com/dmr/index.php/2011/03/08/limit-iowa-governor-budget-transfer-abilities-lawmakers-say/ Des Moines Register, Limit Iowa Governor Budget Transfer Abilities Lawmakers Say, March 8, 2011] </ref>
+
 
+
===Public Employee Unions===
+
 
+
The [[Labor Committee, Iowa House of Representatives|House Labor Committee]] passed a bill curbing collective bargaining rights and exclude health insurance from the scope of collective bargaining for public workers on Feb. 25, 2011 and it will now go to the full [[Iowa House of Representatives|House of Representatives]] for a vote.<ref>[http://www.reuters.com/article/2011/02/25/us-states-unions-idUSTRE71O7C920110225 Reuters "Several U.S. states consider union limits" Feb. 25, 2011]</ref>
+
 
+
==Budget transparency==
+
:'' See also: [[Evaluation of Iowa state website]]
+
Recently, [[Terry Branstad|Gov. Branstad]] signed into law a bill that will create a searchable, online state budget database.<ref>[http://www.chicagotribune.com/news/chi-ap-ia-branstad-database,0,4609559.story ''Chicago Tribune'', Branstad signs budget web site into law, March 7, 2011]</ref>
+
 
+
===Government tools===
+
 
+
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
+
 
+
{|style="width:100%" class=wikitable
+
|+ '''Criteria for evaluating spending databases'''
+
!State Database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line Item Expenditures]]!![[Criteria for evaluating databases|Dept/Agency Budgets]]!![[Criteria for evaluating databases|Public Employee Salary]]
+
 
|-
 
|-
|align=center|[http://das.gse.iowa.gov/iowapurchasing/ Iowa Purchasing]||{{no (Sunshine Review)}}||{{no (Sunshine Review)}}||{{yes}}||{{no (Sunshine Review)}}||{{no (Sunshine Review)}}||{{no (Sunshine Review)}}
 
 
|}
 
|}
* Procurement Services website provides a PDF document of all current contracts.<Ref>[http://das.gse.iowa.gov/iowapurchasing/ Iowa Purchasing]</ref>
 
====Limitations and Suggestions====
 
  
===Support for creation of the database===
+
==Federal aid to state budget==
Although State Representative Jamie Van Fossen supported transparency legislation this spring, [http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&frame=1&GA=82&hbill=HF2439 House File 2439] failed to pass, according to the [[Public Interest Institute|Public Interest Institute's]] October edition of the "Iowa Transparency Newsletter."
+
::''See also: [[Federal aid to budgets in the 50 states]]''
 
+
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
===[[Independent transparency sites]]===
+
Although there is currently no state spending database in Iowa, there are several links (provided below) related to Iowa's level of transparency.<ref>[http://www.limitedgovernment.org/index.html Public Interest Institute]</ref><ref>[http://iowatransparency.org/ www.iowatransparency.org]</ref>
+
 
+
===Multi-Measure Budget Transparency Profile===
+
 
+
The Institute of Government and Public Affairs at the University of Illinois has created a multi-measure transparency profile for Iowa, which measures state transparency as of September 2011 using indicators from a range of organizations, including Sunshine Review. These indicators measure both website transparency and other recognized facets of governmental transparency.<ref>[http://igpa.uillinois.edu/system/files/Iowa_Profile_IGPA_093011.pdf Transparency profile for Iowa]</ref>  In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
+
 
+
In addition to the individual state profile, IGPA offers a 50 state comparison and profiles of other states.<ref>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf 50-state comparison]</ref><ref>[http://igpa.uillinois.edu/content/state-transparency-profiles profiles for other states]</ref>
+
===U.S. PIRG "Following the Money" report===
+
{{Following the Money 2014 Report by State|State=Iowa|Grade=A-|Score=90|Level=leading}}
+
 
+
==Budget background==
+
In Iowa state agencies prepare and submit requests by October 1st for the following fiscal year. On December 15, the [http://www.dom.state.ia.us/state/revenue/rec_overview.html 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 [[Iowa_General Assembly|General Assembly]] in January. From January through February the legislature hosts a variety of joint meetings. Once the budget bill is approved the bill is submitted to the Governor, who has line-item veto authority in appropriations bills.<ref>[http://www.legis.state.ia.us/LIO/Info/2006IowaBudgetProcess.pdf ''State of Iowa'',"Iowa state budget process," January 1,2006]</ref><BR> 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 are 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.<ref>[http://www.legis.state.ia.us/lsadocs/Fiscal_Topics/2010/FTDLR001.PDF  ''Iowa Legislative Services Agency'', “Across-the-Board Reductions,” October 2009]</ref>  
+
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, [[Mississippi state budget#Federal aid to state budget|Mississippi]] received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, [[Alaska state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
  
===Budget figures===
+
{| class="wikitable" style="text-align:center; width:50%;"
The following table provides a history of Iowa's general fund ending balances for the past decade<ref name=cheers/>:
+
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
{| class="wikitable"
+
 
|-
 
|-
! Fiscal Year
+
! valign="bottom" style="background-color:#444; color: white;" | State
! Balance
+
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 
|-
 
|-
|2001 ||$0.0 million
+
| '''Iowa''' || '''33.27%''' || '''$6,073,376,000''' || '''25'''
 
|-
 
|-
|2002 || $89.0 million
+
| [[Kansas state budget|Kansas]] || 26.95% || $4,061,217,000 || 41
 
|-
 
|-
|2003 ||$-45.3 million
+
| [[Minnesota state budget|Minnesota]] || 28.13% || $9,608,018,000 || 39
 
|-
 
|-
|2004 ||$166.0  million
+
| [[Missouri state budget|Missouri]] || 39.42% || $10,440,927,000 || 5
 
|-
 
|-
|2005 ||$166.2 million
+
| [[South Dakota state budget|South Dakota]] || 40.85% || $1,630,220,000 || 4
 
|-
 
|-
|2006 ||$361.9 million
+
|}
 +
 +
===Stimulus===
 +
Iowa received $2 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
 +
 
 +
==Budget transparency==
 +
{| class="wikitable" style="float:right; margin:1em 1em 1em 1em; text-align:center; width:15%;"
 +
! colspan="2" align="center" style="background-color:#008000; color: white;" | Transparency evaluation
 
|-
 
|-
|2007 ||$261.6 million
+
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | Iowa Purchasing
 
|-
 
|-
|2008 ||$196.4 million
+
|[[Criteria for evaluating databases|Searchability]] || {{No (Sunshine Review)}}
 
|-
 
|-
|2009 ||$0.0 million
+
|[[Criteria for evaluating databases|Grants]] || {{No (Sunshine Review)}}
 
|-
 
|-
|2010 ||$335.6 million
+
|[[Criteria for evaluating databases|Contracts]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Line item expenditures]] || {{No (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Dept./agency budgets]] || {{No (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Public employee salaries]] || {{No (Sunshine Review)}}
 +
|-
 +
|colspan="2"|<small>Last evaluated in 2008.</small>
 
|}
 
|}
 +
::''See also: [[Evaluation of Iowa state website]] and [[Constitutional provisions regarding reading of bills]]''
 +
 +
===Government tools===
 +
The table to the right is helpful in evaluating the level of transparency provided by the government website [http://das.gse.iowa.gov/iowapurchasing/ Iowa Purchasing].
 +
 +
===Support for creation of the database===
 +
Although [[Iowa House of Representatives|State Representative]] Jamie Van Fossen supported transparency legislation in 2008, [http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&frame=1&GA=82&hbill=HF2439 House File 2439] failed to pass, according to the [[Public Interest Institute]].
 +
 +
===Independent transparency sites===
 +
Although there is currently no state spending database in Iowa, the following links are related to Iowa's level of transparency:
 +
*[http://www.limitedgovernment.org/index.html Public Interest Institute]
 +
*[http://iowatransparency.org/ Iowa Transparency]
 +
 +
===Multi-measure budget transparency profile===
 +
The Institute of Government and Public Affairs at the University of Iowa created a multi-measure transparency profile for Iowa, which measured state transparency as of September 2011 using indicators from a range of organizations.  These indicators measured both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of Iowa'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of Iowa'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
 +
 +
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Iowa tied for first in the nation with two other states, earning eight out of eight possible points.<ref name=allstates/>
  
The following table provides a history of Iowa's expenditures and gross domestic product (GDP).
+
{| class="wikitable" style="text-align:center; width:55%;"
{| class="wikitable"
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Iowa - IGPA score for budget process, contents and disclosure
 
|-
 
|-
! Fiscal Year
+
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
! Expenditures (billions)
+
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
! GDP (billions)
+
 
|-
 
|-
|2000
+
| Performance measures || {{Yes}}
|$17.2<ref name="Budget">[http://www.usgovernmentspending.com/Iowa_state_spending.html ''US Government Spending'',"Iowa State and Local spending," accessed February 27,2009]</ref>
+
|$90.2<ref name="Budget"/>
+
 
|-
 
|-
|2001
+
| "Generally Accepted Accounting Principles" budget || {{Yes}}
|$18.2<ref name="Budget"/>
+
|$91.9<ref name="Budget"/>
+
 
|-
 
|-
|2002
+
| Multi-year forecasting || {{Yes}}
|$19.3<ref name="Budget"/>
+
|$97.4<ref name="Budget"/>
+
 
|-
 
|-
|2003
+
| Annual cycle || {{Yes}}
|$19.9<ref name="Budget"/>
+
|$102.2<ref name="Budget"/>
+
 
|-
 
|-
|2004
+
| Binding revenue forecast || {{Yes}}
|$20.6<ref name="Budget"/>
+
|$111.9<ref name="Budget"/>
+
 
|-
 
|-
|2005
+
| Legislative revenue forecast || {{Yes}}
|$21.4<ref name="Budget"/>
+
|$115.6<ref name="Budget"/>
+
 
|-
 
|-
|2006
+
| Non-partisan staff || {{Yes}}
|$23.0<ref name="Budget"/>
+
|$121.9<ref name="Budget"/>
+
 
|-
 
|-
|2007
+
| Constitution or statutory tax/spend limitations || {{Yes}}
|$24.7<ref name="Budget"/>
+
|$129.0<ref name="Budget"/>
+
 
|-
 
|-
|2008
+
| '''TOTAL''' || '''8'''
|$26.4<ref name="Budget"/>
+
|$136.5<ref name="Budget"/>
+
|-
+
|2009
+
|$28.4*<ref name="Budget"/>
+
|$144.4*<ref name="Budget"/>
+
 
|-
 
|-
 
|}
 
|}
 +
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
  
*NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year
+
===U.S. PIRG "Following the Money" report===
 +
{{Following the Money 2014 Report by State|State=Iowa|Grade=A-|Score=90|Level=leading}}
  
 
==Accounting principles==
 
==Accounting principles==
:''See also: [[Iowa government accounting principles]]
+
::''See also: [[Iowa government accounting principles]]''
The Iowa State Auditor is David A. Vaudt. The Auditor of State is a constitutional official, elected every four years. The Auditor is required to annually make a complete audit of the books, records and accounts of every department of state government. Iowa’s audit reports are published online.<ref>[http://auditor.iowa.gov/index.html ''Iowa State Auditor Web site'', retrieved October 22, 2009]</ref><ref>[http://auditor.iowa.gov/reports/index.html audit reports]</ref>
+
 
+
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.<ref>[http://das.iowa.gov/about_DAS/about_the_director.html Ray Walton]</ref> DAS Core consists of<ref>[http://das.iowa.gov/index.html ''Iowa Department of Administrative Services Web site'', retrieved October 22, 2009]</ref>:
+
*Finance and Operations
+
*Legal Counsel
+
*Legislative Liaison
+
*Marketing and Communications
+
 
+
==Stimulus==
+
Iowa has received $2 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
+
  
==Public Employees==
+
The [[Iowa Auditor|Iowa State Auditor]] is [[Mary Mosiman]]. The Auditor of State is a constitutional official, elected every four years. The Auditor is required to annually make a complete audit of the books, records and accounts of every department of state government. Iowa’s audit reports are published online.<ref>[http://auditor.iowa.gov/index.html ''Iowa State Auditor Website'', "Mary Mosiman, CPA," accessed April 23, 2014]</ref><ref>[http://auditor.iowa.gov/reports/index.html ''Iowa State Auditor Website'', "Reports," accessed April 23, 2014]</ref>
:''See also [[Iowa public employee salaries]] and [[Iowa public pensions]]
+
According to 2011 Census data, the state of Iowa and local governments in the state employed a total of 224,892 people.<ref name=census>[http://www2.census.gov/govs/apes/11stlia.txt 2011 Iowa Public Employment U.S. Census Data]</ref> Of those employees, 143,994 were full-time employees receiving a net pay of $633,802,154 per month and 80,898 were part-time employees paid $81,721,923 per month.<ref name=census/> More than 59% of those employees, or 134,355 employees, were in education or higher education.<ref name=census/>
+
  
The typical state employee earning an annual $40,000 salary costs taxpayers another 35 percent - or about $14,000 - in benefits.<Ref name=overtime>[http://www.desmoinesregister.com/article/20100905/NEWS10/9050341/1001/NEWS/Some-state-workers-overtime-pay-tops-30-000 The Des Moines Register "Some state workers' overtime pay tops $30,000 " Sept. 5, 2010]</ref>
+
==Contact information==
 +
Iowa Department of Management<br>
 +
State Capitol<br>
 +
Des Moines, IA 50319<br>
 +
PHONE: 515-281-3322<br>
 +
FAX: 515-242-5897<br>
  
 
==See also==
 
==See also==
*[[Iowa government sector lobbying]]
+
* [[Iowa government sector lobbying]]
*[[Iowa public pensions]]
+
* [[Iowa public pensions]]
 +
* [[Governor of Iowa]]
 +
* [[Iowa State Senate]]
 +
* [[Iowa House of Representatives]]
 +
* [[Iowa State Legislature]]
 +
* [[Iowa Auditor]]
  
 
==External links==
 
==External links==
Line 294: Line 419:
 
*[http://data.desmoinesregister.com/results/index.php?info=State_Salaries Public Employee Salary Database]
 
*[http://data.desmoinesregister.com/results/index.php?info=State_Salaries Public Employee Salary Database]
  
==Additional Links==
+
===Additional reading===
* [http://www.businessweek.com/ap/financialnews/D9DJJBH00.htm ''Business Week'',"Iowa lawmakers debate gov't efficiency effort," February 1, 2010]
+
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
* [http://www.governor.iowa.gov/files/2010_condition_state.pdf ''Governor Chet Culver'',"2010 State of the State Address," January 12, 2010]
+
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
* [http://iowaindependent.com/11300/gas-tax-showdown-on-the-horizon ''The Iowa Independent'',"Gas tax showdown on the horizon," February 9,2009]
+
  
 
==References==
 
==References==
Line 303: Line 427:
  
 
{{State budgets}}
 
{{State budgets}}
{{Iowa (Sunshine Review)}}
+
{{Iowa}}
  
 
[[category:Iowa]]
 
[[category:Iowa]]
 
[[Category:Budget information by state]]
 
[[Category:Budget information by state]]

Revision as of 12:07, 23 April 2014

Iowa state budget

Flag of Iowa.png
Budget calendar:  Annual
Fiscal year:  2014
State Credit Rating:  AAA
Current Governor:  Terry Branstad
Financial figures
GF expenses[1]:  $6.2 billion
All funds expenses:  $19.6 billion
Spending % Change:  Green Arrow Up Darker.svg3.2%[2]
% from Federal Funding:  33.27%
State Debt:  $37,783,060,000
Per Capita State Debt:  $12,290
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Iowa, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Iowa's total expenditures increased by approximately $2 billion, from $17.6 billion in 2009 to $19.6 billion in 2013. This represents a 10.2 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  1. Budget instruction guidelines are sent to state agencies in June or July.
  2. Agency requests are submitted to the governor by October 1.
  3. Agency hearings are held in November and December.
  4. Public hearings are held in December.
  5. The governor submits his or her proposed budget to the Iowa State Legislature by February 1.
  6. The legislature adopts a budget in April or May.
  7. The fiscal year begins in July.

The governor may exercise line item veto and item veto of appropriations authority.[6]

The governor is constitutionally and statutorily required to submit a balanced budget. In turn, the legislature is statutorily required to adopt a balanced budget.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
Iowa $6,231 $5,682 $7,539 $157 $19,609 $6,345.10
Kansas $6,198 $3,599 $4,193 $415 $14,405 $4,977.61
Minnesota $20,056 $8,637 $6,263 $810 $35,766 $6,598.43
Missouri $8,022 $7,209 $7,712 $0 $22,943 $3,795.89
South Dakota $1,302 $1,487 $1,307 $35 $4,131 $$4,670.31
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Iowa can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Iowa 16.8% 25.0% 0.6% 19.6% 2.7% 7.5% 27.8%
Kansas 25.8% 16.9% 0.3% 18.6% 2.5% 8.8% 27.1%
Minnesota 23.8% 9.7% 1.4% 27.6% 1.5% 8.3% 27.7%
Missouri 22.6% 4.7% 0.7% 35.0% 2.6% 10.4% 23.9%
South Dakota 14.3% 17.7% 0.8% 20.9% 2.7% 15.9% 27.7%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, expenditures on elementary and secondary education, higher education and public assistance decreased. During the same time period, expenditures on Medicaid, corrections and transportation increased. The table below details changes in expenditures from 2008 to 2012.[7][10][11][12][13] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 16.8% 25.0% 0.6% 19.6% 2.7% 7.5% 27.8%
2011 17.7% 24.6% 0.7% 19.4% 2.2% 7.8% 27.6%
2010 17.3% 24.4% 0.7% 18.6% 2.4% 9.1% 27.5%
2009 17.6% 25.6% 0.7% 17.9% 2.4% 7.8% 28.0%
2008 18.1% 25.2% 0.8% 17.9% 2.6% 6.4% 29.0%
Change in % -1.30% -0.20% -0.20% 1.70% 0.10% 1.10% -1.20%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Iowa $2,109 $3,315 $448 $120 $645 $6,637 $2,147.61
Kansas $2,525 $2,931 $371 $0 $514 $6,341 $2,191.12
Minnesota $4,817 $8,649 $1,165 $39 $2,786 $17,456 $3,220.44
Missouri $1,872 $5,489 $415 $0 $307 $8,083 $1,337.32
South Dakota $776 $0 $0 $1 $587 $1,364 $1,614.44
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Iowa ($ in millions)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $2,109 $3,315 $448 $120 $645 $6,637 $2,147.61
2012 $2,052 $3,030 $426 $142 $661 $6,311 $2,052.33
2011 $1,941 $2,852 $251 $133 $722 $5,899 $1,925.20
2010 $2,243 $2,633 $189 $121 $448 $5,634 $1,847.02
2009 $2,284 $2,720 $272 $116 $542 $5,934 $1,972.83
Change in % -7.66% 21.88% 64.71% 3.45% 19.00% 11.85% 8.86%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: Signed budget bills for FY 2014

Fiscal year 2014

Iowa state budget -- 2014
Iowa State Legislature
Text:HB 648 (This is only one of nine bills comprising the budget)
Legislative History
Introduced:May 8, 2013
State House:May 22, 2013
Vote (lower house):95-0
State Senate:May 22, 2013
Vote (upper house):28-22
Governor:Terry Branstad
Signed:June 20, 2013
Vetoed:Item veto

Iowa's FY 2014 budget set up the state general fund with approximately $6.48 billion, which is about a three percent increase compared to FY 2013. This figure was only $6 million less than Governor Terry Branstad's proposed general fund budget that was unveiled in January 2013.[14] The budget was signed into law by the governor on June 20, 2013.[15]

Fiscal year 2013

See also: Iowa state budget (2012-2013)

Fiscal year 2012

See also: Iowa state budget (2011-2012)

Fiscal year 2011

See also: Iowa state budget (2010-2011)

Fiscal year 2010

See also: Iowa state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][11]

Historical state budget spending in Iowa ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $6,010 31.7% $6,072 32.1% $6,551 34.6% $307 1.6% $18,940
2010-2011 $5,354 29.8% $6,258 34.8% $6,147 34.2% $229 1.3% $17,988
2009-2010 $5,302 30.1% $6,050 34.3% $6,174 35% $111 0.6% $17,637
Averages: $5,555.33 31% $6,126.67 34% $6,290.67 35% $215.667 1% $18,188.33
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Iowa had a state debt of over $37 billion. Its state debt per capita was $12,290. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[16][17]

Total state debt in Iowa[18]
Type Totals U.S. rank
Total state debt $37,783,060,000 35
Per capita debt $12,290 38
State and other fund expenditures $12,082,000,000 38

Public pensions

See also: Iowa public pensions and Iowa public employee salaries

A 2012 report from the Pew Center on the States noted that Iowa's pension system was funded at 81 percent at the close of fiscal year 2010, just above the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as being in need of "improvement."[19]

The funding ratio for the state's pension systems decreased from 89.57 percent in fiscal year 2007 to 79.10 percent in fiscal year 2012, a 10.47 percent drop. Likewise, unfunded liabilities increased from approximately $3.7 billion in fiscal year 2007 to more than $6.8 billion in fiscal year 2012.

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[20]

The table below lists the Standard and Poor's credit ranking for Iowa from 2001 to 2012 (grades from surrounding states are provided for additional context).[20]

S&P credit ratings from 2001 to 2012
Iowa Kansas Minnesota Missouri South Dakota
2012 AAA AA+ AA+ AAA AA+
2011 AAA AA+ AAA AAA AA+
2010 AAA AA+ AAA AAA AA
2009 AAA AA+ AAA AAA AA
2008 AAA AA+ AAA AAA AA
2007 AA+ AA+ AAA AAA AA
2006 AA+ AA+ AAA AAA AA
2005 AA+ AA+ AAA AAA N/A
2004 AA+ AA+ AAA AAA N/A
2003 AA+ AA+ AAA AAA N/A
2002 AA+ AA+ AAA AAA N/A
2001 AA+ AA+ AAA AAA N/A

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[21]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[21]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Iowa 33.27% $6,073,376,000 25
Kansas 26.95% $4,061,217,000 41
Minnesota 28.13% $9,608,018,000 39
Missouri 39.42% $10,440,927,000 5
South Dakota 40.85% $1,630,220,000 4

Stimulus

Iowa received $2 billion in federal stimulus funding between February 2009 and June 2013.[22]

Budget transparency

Transparency evaluation
Iowa Purchasing
Searchability N
600px-Red x.png
Grants N
600px-Red x.png
Contracts Y
600px-Yes check.png
Line item expenditures N
600px-Red x.png
Dept./agency budgets N
600px-Red x.png
Public employee salaries N
600px-Red x.png
Last evaluated in 2008.
See also: Evaluation of Iowa state website and Constitutional provisions regarding reading of bills

Government tools

The table to the right is helpful in evaluating the level of transparency provided by the government website Iowa Purchasing.

Support for creation of the database

Although State Representative Jamie Van Fossen supported transparency legislation in 2008, House File 2439 failed to pass, according to the Public Interest Institute.

Independent transparency sites

Although there is currently no state spending database in Iowa, the following links are related to Iowa's level of transparency:

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Iowa created a multi-measure transparency profile for Iowa, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[23][24]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Iowa tied for first in the nation with two other states, earning eight out of eight possible points.[24]

Iowa - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget
{{{1}}}
Multi-year forecasting
{{{1}}}
Annual cycle
{{{1}}}
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Non-partisan staff
{{{1}}}
Constitution or statutory tax/spend limitations
{{{1}}}
TOTAL 8

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[24]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[25] According to the report, Iowa received a grade of A- and a numerical score of 90, indicating that Iowa was "leading" in terms of transparency regarding state spending.[25]

Accounting principles

See also: Iowa government accounting principles

The Iowa State Auditor is Mary Mosiman. The Auditor of State is a constitutional official, elected every four years. The Auditor is required to annually make a complete audit of the books, records and accounts of every department of state government. Iowa’s audit reports are published online.[26][27]

Contact information

Iowa Department of Management
State Capitol
Des Moines, IA 50319
PHONE: 515-281-3322
FAX: 515-242-5897

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
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