Financial – Page 44 – West Burlington, Iowa

News from the Hill…

The big news this week is that the Senate and House Majorities were able to come together to arrive at joint targets. So, what does that mean exactly? While the overall total amount of dollars, 7.349 billion dollars, was agreed on to spend for the fiscal year 2017 to a few weeks ago. How that was going to be divided up into the different budgets was not able to be agreed to until Wednesday. Both sides have been waiting for the agreement until either side started drafting and working on the individuals’ budgets. Now with the joint target agreements for each general fund budget done the actual budget bills will begin. There is much to do and time is running out.

Sluggish Revenues…

There are three months left in fiscal year 2016, which ends on June 30^th. Can the revenues grow enough in the last three months to reach the estimated amount? While it is possible it could go either way. If the revenues come up short of the prediction there is about a 71 million dollar surplus of revenues above the expenditures. Obviously if revenues are over 71 million less than the estimate the fiscal year will end in the red. That is exactly why it is important to hold the line on spending and you need to have a cushion built in offset potential shortages. Personal Income, which makes up approximately 56 percent of the general fund revenue, continues to be strong. Sales and Use Tax, which makes up approximately 35 percent, of the general fund revenue continues to be a little sluggish. Corporate Income Tax, which makes up approximately 6 percent of the general fund revenue, is way behind. This of course is a reflection in the down turn in the agricultural economy.

Committee Work…

The only committees meeting this time of year are the Appropriations Committee, Ways and Means Committee and occasionally the Oversight Committee. One half of the Iowa House serves on either Appropriations or Ways and Means. We are getting to that time of the year when we will conclude our committee work so we can finish for the year. All of the budgets will need to be passed out of their respective sub-committees before they can be debated and passed out of the Appropriations Committee. So I do not see any way we can be done by our scheduled end date of April 19. However, if all goes well we should be done before May 1.

Floor Action…

This time of year can be filled with both parties spending lots of time in their respective caucuses as well as lots of time on the House Floor. In the last few weeks, the debates will get long and go into the night. But like my Mother often said, “Nothing good is going to happen after mid-night.” I hope we listen to her advice and don’t make any important decisions in the wee hours of the night.

“Be sure you put your feet in the right place, then stand firm” – Abraham Lincoln

For more information on these and other bills: www.legis.iowa.gov

Until next time,

Tom Sands

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