January 2010 Archives

Governor's Budget
On Wednesday we received the first version of the Governor's proposed $5.707b budget for FY11. At first glance it shows that the budget continues on the same path that we have been traveling for the past three years; i.e. spending more than we will be getting in revenues and using one time funding for $387 million. Some other juggling includes an item showing $341m in savings from government reorganization. The nonpartisan Legislative Fiscal Bureau has only been able to show $29m for any reorganization at this time.Approx. $140m of leftover Federal stimulus is proposed for a portion of Medicaid and education funding.

The proposed budget doesn't fund the previously approved 2% allowable growth for schools, property tax credits are shown below last year's level, and it is proposed to fund the Highway Patrol from the Road Use Tax Fund. These moves will cause property taxes to increase depending on the condition of the local school budgets to absorb the lack of funding.

An interesting sidelight was that the Governor's budget was slated to be released at 2:00 p.m. and at very near 2 p.m., the fire alarm went off at the Capitol, with the sirens and PA announcements to vacate the building. Apparently there was some sort of malfunction but it was an interesting start to a new budget year.

Voting after midnight
You may recall that at the end of last year's legislative session we had a couple of marathon days where we started at 9 a.m. on Friday and closed the session at approx. 5 a.m. on Sunday morning - with only 5 hours out of the Capitol. That's when a great deal of bad legislation was rammed through on bills that nobody had a decent chance to read. It was bad lawmaking. On Thursday morning, we passed a bill that dealt with some House rules on other matters and Repr. Cownie of West Des Moines offered an amendment to the House Rules that would prohibit voting on any bills between 12 a.m. and 8 a.m. Apparently the majority party is very comfortable with these kinds of shenanigans because the amendment failed on a direct party line vote. It appears we will see some of the same misguided procedures this year.

Renaming a State Dept.
Many times it's difficult for the public to see what's actually happening inside the Capitol as well as the internal workings of state government. I wanted to share a personal observation that I have been seeing for the past couple years. When the Republicans were in the majority four years ago, another standing committee was formed in an effort to address some of the unattended issues related to our veterans. I have been pleased to have served on the Veterans committee since its formation. For the first couple years it functioned well as a bi-partisan committee which did some good work for veterans. Last year (and it appears to be continuing this year), it became a platform for labor unions to expand their influence. Interestingly, it appears to be aided by the Dept. of Workforce Development.

Last week the House passed a bill allowing unemployment benefits to the spouse who quits a job because of deployment or relocation of the military spouse. This has been something pushed by labor unions for a long time and virtually every labor union was registered for the bill. It was interesting that one of the organizations representing veterans was registered in opposition. (Now the Democrats are trying to eviscerate the lobbyist who voted in opposition). The Dept. of Workforce Development apparently was pushing it as well, according to the floor manager who is the chair of the Veterans Committee.

Workforce Development was pushing a bill last year through the Labor Committee (and it may be back this year) that would make owners liable for employee payments in case of bankruptcy of a corporation. It doesn't seem to make any difference to them that if this bill was passed into law, it would effectively shut down any future formation of businesses of any kind that would employ anyone. After considering all of those issues the Dept. of Workforce Development seems to be supporting, I think it's time to rename the Dept. to more adequately describe its apparent mission; i.e. we should consider renaming it to the Dept. of Workforce Destruction. At least people would better understand what they're up to.

Next forum: Saturday, Feb. 6; Waukee City Hall, 9:30 a.m.
Governor's Budget Released
Governor Culver's budget starts with $5.32 billion in general fund appropriations, and then he proposes to use $387 million of one-time money to increase the spending to $5.707 billion. This one-time money will come from the cash reserve fund ($207.5 million), federal stimulus money for Medicaid ($94.2 million), federal stimulus money for education and general purposes ($48 million), and Senior Living Trust Fund for Medicaid ($37.7 million). This expenditure will empty the Senior Living Trust Fund. Using one-time money for ongoing expenses is not a good way to budget. The Governor includes $341 million in his budget from so-called reorganization savings. However, the nonpartisan Legislative Services Agency only predicts $29 million in savings for 2011 from the proposed legislation.


Your Property Taxes will Increase

Your property taxes will increase soon, but don't rush to blame your city, county, or school board. Decisions being made in the state legislature and by the Governor will cause automatic increases in property taxes. When unfunded mandates are shifted to cities and counties, or when state aid to schools is underfunded by the state, the school spending authority allows the difference to be filled with property taxes. The Governor's budget proposal under-funds state aid to schools by $170 million. His proposal to shift $50 million from the Road Use Tax Fund will also cause property taxes at the local level. In addition, the government-run preschool program (promised to be paid with state dollars) will now cause property taxes to increase.

Debating after Midnight
We tried to amend the Iowa House Rules to say "Voting in the House shall not occur between midnight and 8 a.m. on any legislative day except for voting on a motion to adjourn." The Democrat majority voted it down. I guess we will continue to do business at the Capitol when Iowans are asleep.

How to Contact Me
I can be reached by telephone at the Capitol 515-281-3221, directly to my desk in the House Chamber 515-281-7615, or at home 515-462-5081. Please send mail to my home at 1524 Highway 169, Winterset, IA 50273, or the State Capitol Building, Des Moines, IA 50319.  I appreciate hearing from you.
This week the focus was on two basic developments. The first was the release of the Governor's proposed budget on Wednesday and the other was the supposed Government Reorganization bill.

With the backdrop of an approximate $1 billion shortfall, the Governor's budget proposal was an even bigger event than usual. I was disappointed, but not surprised, at the Governor's reliance on one time funds and anticipated savings to balance his budget. While it is the legislature's job to actually make the numbers work, I was hoping for more actual numbers and less speculation.

As it is, we will have to carefully analyze his numbers, compare those with the non-partisan Legislative Services Agency, and of course, the state auditor, to see how the numbers come out.

The next item is the supposed Government Reorganization Bill, SF 2088. It started out at over 250 pages and has had some major changes all ready. We are scheduled to debate the bill this coming Monday and my assertion is that we should not rush a bill this big, this fast.

A chance to get bi-partisan cooperation, on an opportunity of this magnitude, should not be rammed through. Virtually all of us, at one time or another, have wondered why government operates the way it does. Why not take this opportunity to get ideas from ALL of us?

What is the rush?

If the governor truly believes there is over $300 million to be saved by reorganizing government, the question that needs asking is, "Why wait 'till now?" He has been in office three years. With the governor's own numbers, at $300 million per year, we could have saved $900 million and most of our current budget shortfall would not even exist. Excuse me if I seem suspicious, but I cannot help but think that there must be some other reason this bill is being pushed this hard, this fast.

As always, I want to hear from you. My Senate number is (515) 281-3371 and my home number is (515) 432-7327 or write me at: State Capitol, Des Moines, IA 50319 or at my home address: 1313 Quill Avenue, Boone, IA 50036 or email me at jerry.behn@legis.state.ia.us.

About this Archive

This page is an archive of entries from January 2010 listed from newest to oldest.

August 2009 is the previous archive.

February 2010 is the next archive.

Find recent content on the main index or look in the archives to find all content.

Pages

Powered by Movable Type 4.261