HOUSE TO HOUSE

By Polly Granzow

State Representative

The Urge to Splurge

Governor Culver presented his budget to the legislators the end of January, and each Appropriations Committee received budget targets the end of February.  We are now taking time to analyze and review revenue and spending for the next fiscal year.  We will spend significant time the remainder of this session to establish a budget for Iowa.

Revenue in Iowa has increased steadily the last year and a half after several years of rough times.  However, State Auditor Dave Vaudt issued a warning to legislators as they prepare the Governor’s proposed budget.  It shows that revenue over actual expenditures this year is less than 1%.  In next year’s budget, $436 million is needed for “built-in” spending increases, and an additional $157 million is needed for state salary increases.  That totals $593 million increased spending, or 11.3%.

Additionally, the Governor is asking for increases for new programs and increased spending in some areas.  He requests $50 million for a “power fund”, $12.5 million to the University of Iowa for stem cell research, $90 million for Universal Health Care, $70 million for teacher pay increase, $20 million for mandatory pre-school for four year olds, $25 million to the Regents, and $18 million to Community Colleges, to name a few.

To pay for this, the Governor is asking for $1 additional tax on cigarettes.  It was revealed that this $140 million in new taxes will not be used totally for health programs; and as smoking decreases, revenue from this tax will also decrease.

Numbers do not lie.  There is not enough money to pay for all the requests, and new programs also need new employees.  The urge to spend must cool down.  First, it is important to determine the revenue before wishful spending.  Second, review existing programs to see if they are still needed.  Third, consolidate programs that overlap services.  Fourth, don’t spend this year’s excess revenue for next year’s expenditures.  Last, don’t ignore expenditure limitations in the law.

When bad times come, and they always do, state revenues will dip and demand for government services will increase.  Will we have money in the till to provide those services?

Coming soon

HF6 raises the compulsory age from 16 to 18 for school attendance.

Pre-school will be mandatory for four year olds.  Enrollment numbers will be included in the k-12 formula for state funding.  Private pre-schools must have a public school teacher in the class ten hours a week.  Currently, children must attend school at age six.  Kindergarten is not required.  If a child attends pre-school at age four, and must attend the regular system at age six, what happens to the five year olds?

HSB192 would eliminate employer-directed medical care and allow employees freedom to choose their own medical care, at the cost of the employer.

As always, you can contact me on these or other issues at polly.granzow@legis.state.ia.us or at 641-858-5210 on weekends.