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State
Auditor Blasts Governor’s FY 05 Budget Request
On
Friday, State Auditor Dave Vaudt released his review of the
Governor’s FY 2005 budget recommendations.
His review was highly critical of the Governor for several
reasons.
First,
the Auditor criticized the Governor’s budget for lacking
clarity. “If our
elected leaders truly want to make sound financial decisions for
Iowa
's return to good fiscal
health, more clarity is sorely needed,” noted Vaudt. “It is
critical that the budget document provide a summary of what I call
'true total General Fund expenditures.' The Governor's budget
clearly lacks this level of clarity.”
The
Auditor states, “While the Governor purports to spend $4.76
billion, actual ‘true total General Fund expenditures’ total
$4.99 billion – 4.7 percent more than reflected in the budget
document.”
Second,
the auditor said that other than recommending repayment of $20
million borrowed from the Senior Living Trust Fund, the
governor’s budget fails to address the staggering $930 million
that’s been taken from over 30 different funds.
Finally,
the auditor criticized the governor for proposing $300 million of
bonding and $340 million of taxes increases.
Taking on more debt and raising taxes is not sound fiscal
policy when you look at
Iowa
’s structural deficit
and concerns for immediate and long-term economic growth.
98%
EXPENDITURE LIMITATION VETOED BY GOVERNOR
On
Monday, February 9, the Senate approved HF 2039, the bill that
lowers the expenditure limitation from 99 percent to 98 percent
beginning in FY 2006.
The 98 percent limitation would require that the
Legislature and the Governor leave a larger ending balance to deal
with lower revenue estimates and lessen the need for across the
board cuts. In
addition, the bill requires that one-half of any surplus be
deposited into the Senior Living Trust Fund (SLTF).
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On
Thursday the governor vetoed the plan.
This action is perplexing because in the veto language, the
governor acknowledged that we have a revenue problem, yet he refuses
to fix it. In addition,
if we had the 98% expenditure limitation last year, the massive cuts
to education and other programs enacted by the governor would not
have happened.
HOUSE
TO FULLY FUND EDUCATION; KEEPS IT AS PRIORITY NUMBER ONE
Republican
lawmakers today unveiled legislation to provide $1.9 billion to
Iowa
’s schools for fiscal year 2005.
The money maintains the Legislature’s commitment to funding
allowable growth at 2 percent and backfills the 2.5 percent cut
schools received last year.
Republicans
are keeping their commitment to
Iowa
’s schools. We know
that education suffered severely under the across-the-board cuts
ordered by the governor last fall.
This funding restores those cuts so that
Iowa
’s schools can continue to provide our students with a world-class
education.
The
plan also amends the school funding formula to guarantee schools
will receive funds specifically reserved for textbooks and classroom
supplies. Under the
legislation, $10 million in funding will be set aside to meet
schools’ needs in these areas. Over the past five years districts
have averaged $10 million in textbook expenditures.
These
funds reflect that education is our top priority.
It is a responsible and reasonable funding level
considering the budget constraints we are working under this year.
Ways
& Means Update
Bills
introduced in committee this week:
HSB 617 An
Act repealing the state guarantee to fully fund certain property tax
credits or exemptions and providing an effective date.
Bills passed out of committee
this week:
No bills passed committee this week.
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Week
in Review Archives