SF 2117/SSB 3089 – FY18 mid-year cuts & supplemental appropriations.
COMMITTEE ACTION:
SF 2117 / SSB 3089 is a Senate Republican proposal to reduce appropriations to departments and state agencies for FY18, transfer $7 million to the General Fund from the Skilled Worker & Job Creation Fund, and make supplemental appropriations. The bill reduces FY18 General Fund net appropriations by $50 million.
The bill makes supplemental appropriations to the State Public Defender’s Office for Indigent Defense ($1.7 million) and to Department of Administrative Services for utilities costs ($451,871). The new net FY18 appropriation is $7.23 billion (down from $7.27 billion), with an estimated ending balance of $33.5 million. The bill is effective upon enactment.
Division I–Appropriation Reductions
Significant General Fund budget reductions include:
- -$19.3 million from the Regents
- University of Iowa: -$8.6 million
- Iowa State University: -$6.9 million
- University of Northern Iowa: -$3.7 million
- -$9.9 million from the Department of Human Services (per committee amendment)
- -$5.4 million from Community College General Aid
- -$4.8 million from the Judicial Branch
- -$3.4 million from the Department of Corrections
- -$1.7 million from the Department of Education
- -$1.3 million from the Department of Public Health
Department Director and DOM Authority: The bill gives department directors the authority to make reductions within their departments as they see appropriate, in consultation with the Department of Management (DOM). The one exception is the reduction to the Department of Public Safety (-$300,000); the bill prohibits the Department of Public Safety from applying the reductions to the State Patrol. The bill requires DOM, in consultation with the departments and Judicial Branch, to identify and implement reductions and file a report with the Legislature within 15 days of the effective date. The bill allows DOM to reduce standing appropriations to departments and state agencies. The bill reduces the standing appropriation for regional tourism marketing by -$150,000.
Transfer of funds: The bill transfers $7 million from the Iowa Skilled Workers & Job Creation Fund to the General Fund. The bill reduces the appropriation for the High Quality Jobs Program administered by Iowa Economic Development Authority from $15.9 million to $8.9 million (-$7 million reduction). The High Quality Jobs Program receives funding from the Skilled Worker & Job Creation Fund.
Supplemental Reimbursement for Ground Emergency Medical Transportation: The bill directs the Department of Human Services to submit a Medicaid State Plan amendment to request authorization for a funding mechanism that allows supplemental payments to cover the funding gap between a provider’s actual costs for Ground Emergency Medical Transport (GEMT) and the allowable amount now paid by Medicaid and other sources of reimbursement. The funding mechanism would allow the unreimbursed portion of the GEMT costs to be counted as the state portion of the Federal Financial Participation match.
Reduction to Legislative Branch: The bill increases the reduction to the standing unlimited appropriation to the General Assembly by $600,000.
Repeal Gubernatorial Transition Funding: The bill repeals an appropriation of $150,000 to the Offices of the Governor and Lt. Governor for FY18 for expenses incurred during the gubernatorial transition.
Division II–Supplemental Appropriations
- $1.7 million to the State Public Defender’s Office for the Indigent Defense Fund for eligible adults and juvenile criminal cases.
- $451,871 to the Department of Administrative Services for the utilities costs.
Division III – Effective Date
The bill is effective upon enactment. Two amendments were adopted by the committee: one clarifies language regarding ground emergency medical transportation providers; and the other strikes various reductions to the Department of Human Services and increases the general line-item reduction to the Department from $6.6 million to $9.9 million. The amendment also eliminates an increase to the Pharmaceutical Settlement Account.
[1/25: 13-8 (party-line)]