SF 2117—Senate Republican FY18 midyear cuts.
SF 2117 is the Senate Republican proposal that cuts appropriations to various departments and state agencies for FY18, makes a transfer into the General Fund out the Skilled Worker & Job Creation Fund, and makes supplemental appropriations.
The bill, as amended on the Senate floor:
- Reduces FY18 General Fund appropriations by $34 million;
- Transfers $10 million from the Skilled Worker & Job Creation Fund into the General Fund;
- Makes supplemental appropriations to the State Public Defender’s Office for Indigent Defense ($1.7 million) and to the Department of Administrative Services for utilities costs ($451,871).
The new net FY18 appropriation is $7.24 billion (down from $7.27 billion. The estimated ending balance is $18.4 million. The bill is effective upon enactment.
DIVISION I–APPROPRIATION REDUCTIONS (Section 1)
Significant General Fund budget reductions include:
- -$14.5 million from the Regents
- -$6.2 million from the Department of Human Services
- -$3.4 million from the Department of Corrections
- -$1.8 million from Community Colleges General Aid
- -$1.6 million from the Judicial Branch
- -$1.1 million from the Department of Education
Department director and DOM authority: The bill gives the department directors authority to implement the reductions within their departments as they see appropriate, in consultation with the Department of Management (DOM).
Language to departments regarding reductions:
- Department of Education cannot reduce the standing appropriation to non-public school transportation.
- Department of Human Services cannot reduce benefits under the Medicaid state plan and approved waivers.
- Department of Justice (Attorney General’s Office) cannot reduce expenditures for victim assistance grants.
- Department of Public Safety cannot apply reductions to the State Patrol.
- DOM, in consultation with the departments and judicial branch, must identify and implement reductions, and file a report with the Legislature within 15 days of the effective date of the bill. DOM must reduce standing appropriations to departments and state agencies.
Tourism (Section 2): The bill reduces the standing appropriation for regional tourism marketing by $150,000.
Transfer of Skilled Worker Job Creation Fund and the Reduction of High Quality Jobs (Section 3 and Section 6): The bill transfers $10 million from the Iowa Skilled Worker & Job Creation Fund to the General Fund. The appropriation for the High Quality Jobs Program, which receives funding from the Skilled Worker & Job Creation Fund, is reduced from $15.9 million to $5.9 million.
Supplemental Reimbursement for Ground Emergency Medical Transportation (Section 4): The Department of Human Services must request authorization for a funding mechanism that allows supplemental payments to cover the difference between a provider’s costs for Ground Emergency Medical Transport (GEMT) and the allowable amount now received from Medicaid and any other sources of reimbursement. The unreimbursed portion of GEMT costs would be counted as the state portion of the Federal Financial Participation match. This is contingent on federal Medicaid funding.
Legislative Branch (Section 5 and Section 7): The bill increases the reduction to the standing unlimited appropriation to the Legislature by $600,000. Legislators’ per diem for the 2018 session is reduced from 100 to 85 calendar days.
Graduate Medical Education and Disproportionate Share Hospital Fund (Section 8): Requires the University of Iowa Hospitals & Clinics and Broadlawns to transfer to the Medicaid program the non-federal share of Graduate Medical Education and Disproportionate Share Hospital payments. Potential estimates of increased costs for UIHC and Broadlawns for the rest of FY18:
- $316,485 to UIHC and Broadlawns (Disproportionate Share Hospital payments)
- $2,510,160 to UIHC and Broadlawns(Graduate Medical Education)
Repeal Gubernatorial Transition Funding (Section 9): The bill repeals an appropriation of $150,000 to the Offices of the Governor and Lieutenant 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.
- $64,257 to the Pharmaceutical Settlement Account. Not a General Fund supplemental.
DIVISION III – EFFECTIVE DATE
The bill is effective upon enactment.
[2/8: 29-21 (No: Democrats, D. Johnson)]