Culver orders across-the-board cuts
By Fred Love Journal Des Moines Bureau | Posted: Friday, December 19, 2008
DES MOINES -- Iowa Gov. Chet Culver on Thursday ordered across-the-board state budget cuts that he said will trim millions in state aid to schools and likely lead to layoffs or furloughs for state employees.
The 1.5 percent across-the-board cuts, effective Jan. 1, will amount to $91.4 million in savings in the current budget year. Another $10 million in unspent dollars in other accounts and funds will be transferred to the state's general fund to pay for ongoing expenses.
Culver's action will trim $33 million in state aid to public schools this year and $10 million from the Iowa Board of Regents, which oversees the state's public universities.
"This will have an impact on programs that the state provides. As you can imagine, this is not what I want to do, but it's what I have to do as governor," he said.
The cuts will trim $936,519 from the Sioux City Community School District's budget for the next fiscal year, likely coming out of discretionary funds, district financial director Bill Stoneburg said.
Items likely to see reductions, he said, are new technical equipment and hiring for positions left vacant due to early retirement. Cuts will also come in such programs as educational excellence, at-risk grants and instructional support match grants not funded through the general fund.
"I don't anticipate we'll be making any decisions until the middle of January at the earliest," he said
Iowa State Education Association President Chris Bern said the cuts may hurt local economies, which are often dependent on schools.
"In a simple across-the-board slice of the pen, the governor has short-changed Iowa's schoolchildren and relegated us to more years of fighting for what we are worth," Bern said in a statement.
Culver said the cuts will target nearly every state agency, but he said he's granting the agencies flexibility to determine how best to pare their budgets.
He noted that the Iowa Attorney General's Office has implemented furloughs for employees to avoid layoffs during past budget crunches, but he said these cuts will likely mean layoffs for some state employees.
Culver said he'll ask the Legislature to restore funding to the state's corrections department and state troopers to shield them from the cuts.
He said he'll also resist tapping the state's economic emergency funds to help with the current year's budget because he said next year may bring even more dire economic conditions.
A bleak revenue projection from a panel of state budget experts last week forced Culver to order the across-the-board cuts.
The state's Revenue Estimating Conference predicted the state will have nearly $100 million less than earlier projections indicated to meet budget commitments for the current fiscal year.
Culver announced last week that he would implement about $40 million in spending reductions through a hiring freeze and other measures, and he's asked the Legislature to pull the plug on a new state office building in Des Moines to save another $37 million.
Earlier on Thursday, state legislative leaders said the budget they'll put together during the upcoming legislative session for fiscal 2010 won't have room for new programs.
Senate Majority Leader Mike Gronstal, D-Council Bluffs, said he wants the session, which begins Jan. 12, to be shortened by 10 days to save money.
Gronstal said lawmakers may consider leasing the Iowa Lottery as a means of raising money to deal with the budget crunch, an option Culver is also looking into.
"Any idea that anyone has to help us balance the budget is on the table," Culver said when asked a question on the subject.
How much will your district lose?
Search a database with each district's estimated cuts, as determined by the governor's office.
Fred Love can be reached at (515) 422-9048 or fred.love@lee.net.
Staff writers Earl Horlyk and Charlotte Eby contributed to this report.
Big losers
Gov. Chet Culver on Thursday ordered 1.5 percent across-the-board cuts throughout state government totaling $91.4 million. Some of the major cuts are:
$33.3 million: State aid to K-12 public schools
$20.5 million: Health and human services
$4.1 million: University of Iowa
$3.2 million: Iowa State University
$1.4 million: University of Northern Iowa
$2.7 million: Community colleges
$2.2 million: Judicial Branch
The 1.5 percent across-the-board cuts, effective Jan. 1, will amount to $91.4 million in savings in the current budget year. Another $10 million in unspent dollars in other accounts and funds will be transferred to the state's general fund to pay for ongoing expenses.
Culver's action will trim $33 million in state aid to public schools this year and $10 million from the Iowa Board of Regents, which oversees the state's public universities.
"This will have an impact on programs that the state provides. As you can imagine, this is not what I want to do, but it's what I have to do as governor," he said.
The cuts will trim $936,519 from the Sioux City Community School District's budget for the next fiscal year, likely coming out of discretionary funds, district financial director Bill Stoneburg said.
Items likely to see reductions, he said, are new technical equipment and hiring for positions left vacant due to early retirement. Cuts will also come in such programs as educational excellence, at-risk grants and instructional support match grants not funded through the general fund.
"I don't anticipate we'll be making any decisions until the middle of January at the earliest," he said
Iowa State Education Association President Chris Bern said the cuts may hurt local economies, which are often dependent on schools.
"In a simple across-the-board slice of the pen, the governor has short-changed Iowa's schoolchildren and relegated us to more years of fighting for what we are worth," Bern said in a statement.
Culver said the cuts will target nearly every state agency, but he said he's granting the agencies flexibility to determine how best to pare their budgets.
He noted that the Iowa Attorney General's Office has implemented furloughs for employees to avoid layoffs during past budget crunches, but he said these cuts will likely mean layoffs for some state employees.
Culver said he'll ask the Legislature to restore funding to the state's corrections department and state troopers to shield them from the cuts.
He said he'll also resist tapping the state's economic emergency funds to help with the current year's budget because he said next year may bring even more dire economic conditions.
A bleak revenue projection from a panel of state budget experts last week forced Culver to order the across-the-board cuts.
The state's Revenue Estimating Conference predicted the state will have nearly $100 million less than earlier projections indicated to meet budget commitments for the current fiscal year.
Culver announced last week that he would implement about $40 million in spending reductions through a hiring freeze and other measures, and he's asked the Legislature to pull the plug on a new state office building in Des Moines to save another $37 million.
Earlier on Thursday, state legislative leaders said the budget they'll put together during the upcoming legislative session for fiscal 2010 won't have room for new programs.
Senate Majority Leader Mike Gronstal, D-Council Bluffs, said he wants the session, which begins Jan. 12, to be shortened by 10 days to save money.
Gronstal said lawmakers may consider leasing the Iowa Lottery as a means of raising money to deal with the budget crunch, an option Culver is also looking into.
"Any idea that anyone has to help us balance the budget is on the table," Culver said when asked a question on the subject.
How much will your district lose?
Search a database with each district's estimated cuts, as determined by the governor's office.
Fred Love can be reached at (515) 422-9048 or fred.love@lee.net.
Staff writers Earl Horlyk and Charlotte Eby contributed to this report.
Big losers
Gov. Chet Culver on Thursday ordered 1.5 percent across-the-board cuts throughout state government totaling $91.4 million. Some of the major cuts are:
$33.3 million: State aid to K-12 public schools
$20.5 million: Health and human services
$4.1 million: University of Iowa
$3.2 million: Iowa State University
$1.4 million: University of Northern Iowa
$2.7 million: Community colleges
$2.2 million: Judicial Branch
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