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Pending
Budget Deficit Needs Attention Now
The
state of Iowa is facing the same problem that numerous families
throughout the nation are facing-high energy costs and a lagging
economy.
Belts are being tightened, and dollars are being stretched.
Iowa’s
economy, though not in a recession, has slowed considerably and is
showing no signs of picking up in the next few months.
As House and Senate members are planning the state’s
budget for FY 2002, many factors are coming into play.
An
example of the problem being faced is the $170 million revenue
loss for FY 2001 that was unexpected.
To date, only $5 million in new revenue has been collected.
If revenues don’t recover, budget cuts will be necessary
to balance the FY 2001 budget.
Cash flow problems are becoming an issue.
This could cause late payments to schools, and counties
could suffer from state property relief being withheld.
Without
a doubt, budget adjustments are needed to avoid drastic measures
next year.
In the event that this session of the General Assembly
adjourns without addressing this looming budget situation,
legislators will arrive in Des Moines for the 2002 session facing
a budget hole of nearly $300 million dollars.
Fortunately,
Republicans are looking at this issue realistically.
If the money isn’t there, it can’t be spent.
We have proposed $40 million in cuts that represent less
than 1% of the entire budget.
Our
budget cutting plan is sensible, and will spare school aid, prison
operations, state payments for property tax relief, and health
care for the poor.
Departments expected to see budget decreases are
Administration, Regulation, Transportation, and Human Resources,
among others.
We have even allowed for a $1.4 million cut in our own (the
Legislature’s) budget.
Although
these budget decreases may seem
hard to handle in some instances, planning ahead, the
people of Iowa will be much better off in the future.
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$40
Million ‘Lockbox’ Established
Continuing
their pledge to make Iowa schools even better, House Republicans
announced plans to fund an overhaul of the state’s teacher
compensation system.
On Wednesday, the House Appropriations Committee unanimously
approved the “Lockbox Bill.”
The bill sets aside $40 million in
a ‘lockbox.’
This money is no longer subject to the appropriations
process.
It is set aside for education, and education alone.
If by chance, policy language falls through, the money will
stay in the reserve;
only to be spent on improving teachers’ salaries in Iowa.
Even before the session started, Republicans stated that
teacher pay was one of their top priorities.
The $40 million will be held in reserve for the sole purpose
of improving salaries for Iowa teachers.
Numerous policy issues still need to be resolved, but the
money will be secure.
Iowa
Press
Due
to scheduling conflicts, Rep. Jamie Van Fossen and Senator Larry
McKibben’s appearance on Iowa Press will be postponed.
They were originally scheduled to appear on the Sunday,
February 25th episode, but will instead be rescheduled
for March.
Ways
& Means Update
Bills
assigned in the Ways & Means Committee this week:
HSB
161
An act relating to a limitation on property taxes for cities
and counties.
HSB
164
An act exempting property owned and operated by an Indian
housing authority from property tax.
Bills
That Passed Out of Committee This Week:
HSB
127
An act updating the Iowa Code references to the Internal
Revenue Code, increasing the minimum filing income requirement for
dependents, lowering the threshold amount for making estimated
payments for corporations, and financial institutions, and
increasing the estimated tax payment standard for assessing a
penalty for corporation and financial institution.
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Week
in Review Archives
