News from the Hill…
This week another step in the budget process was taken. The House Republicans and the Senate Democrats released their respective budget targets. For Fiscal Year (FY) 2014, which is the budget we are working on, there is $7.1822 billion available to spend. However, of that amount only $6.5377 billion is an on-going revenue stream. To spend all the projected available dollars in a high revenue growth year to grow government, sets future budgets at risk for across the board cuts. I simply will not use one-time money for an on-going expenditure. I will spend less than what the state collects and will not balance the budget with smoke and mirrors to deceive the tax payers of Iowa just to spend more money. Growing government is not a priority of mine. Growing jobs, building personal family monetary strength and opportunity is a priority of mine. We are proposing to spend $6.4139 billion, which is an increase of 3 percent over last year’s level. Our proposal spends 98% of on-going revenue or 89.55% of available revenue for FY 2014. This budget leaves a projected ending balance of $840.7 million at the end of the Fiscal Year 2014. While revenue growth is currently ahead of projections, there is so much uncertainty about future revenue due to the on-going drought conditions, slow economic growth and the federal budget situation.
Our budget proposal continues the practice we implemented two years ago of aligning spending with revenue. The budget continues to make state commitments a priority. The budget proposal fully funds property tax credits, funding necessary to maintain our commitment to education; including the funding necessary to allow the Regents universities to freeze tuition, $10 million to the community colleges and a two percent increase in supplemental state aid for our local schools.
The Senate Democrats budget targets were released 30 minutes after the House and they take a completely different road. They spend $6.9010 billion in the state General Fund which is an eleven percent increase over last year. Senate Democrats are proposing to spend $1.05 for every dollar of on-going state revenue. This simply does not make sense and places future taxpayers at risk. To sustain this amount of spending would require 6.2% growth in revenues for FY 15. The Revenue Estimating Conference is projecting revenue growth of 3.3 percent in FY 13 and for FY 14 to have growth of 3.4%. Historically revenue growth over the last twenty years has averaged 3.34 percent. To spend more than the average growth is simply fiscally irresponsible. While details of their budget were not released it is apparent there are big differences between the two budgets and the two caucus’s philosophical views.
Funnel week approaching…
We are one week away from being half way through session. Policy bills need to be out of their respective committees by March 8 or they are dead for the year. There will be a substantial mount of bills that will no longer be eligible for debate after next Friday. The term “funnel” was established because many bills will be funneled out of circulation. Bills in the Ways and Means Committee and the Appropriations Committee are funnel proofed and eligible for consideration throughout the entire session. While the policy committees are slowing down, our work load will be picking up. There are a certain amount of policy bills every year that may have a tax or a fee included in them that forces them to come to the Ways and Means Committee. Usually when they come to my committee we only spend time discussing the fee or tax portion of the bill and not the entire bill. This same approach applies to the Appropriations Committee if there is an appropriation in a policy bill. Both of these two committees are on call all session long.
“To educate a man in mind and not in morals is to educate a menace to society.”
– Theodore Roosevelt
For more information on these and other bills: www.legis.iowa.gov
-Tom Sands