Appropriations – Week of March 1, 2010

STAFF CONTACT:  Theresa Kehoe

SF 2366 – FY10 Supplemental

SSB 3238 – Administration & Regulation FY11 Appropriations

FLOOR  ACTION:

SF 2366 backfills $51.2 million from the FY10 General Fund in the areas of Public Safety, Education and Public Health. In addition, $19.3 million is deappropriated from infrastructure funds in response to lower revenue projections made by the Revenue Estimating Conference in December 2009. Highlights include: 

Department of Corrections (DOC) – Total $5,830,151

• Ft Madison – $764,048
• Anamosa – $543,179
• Oakdale – $2,650,762
• Newton – $526,181
• Mt Pleasant – $415,980
• Rockwell City – $108,833
• Clarinda – $451,752
• Mitchellville – $169,416
• Ft. Dodge – $200,000

Community Based Corrections (CBCs) – TOTAL $2,031,219

• 1^st CBC – $110,275
• 2^nd CBC – $308,214
• 3^rd CBC – $18,010
• 4^th CBC – $76,117
• 5^th CBC – $790,020
• 6^th CBC – $302,810
• 7^th CBC – $24,923
• 8^th CBC – $400,850

Supplemental amounts for DOC & CBCS do not revert  and can carry over to FY11

State Public Defender $10.9 million – funds do not revert and can carry over to FY11

Department of Public Defense – TOTAL $587,816

• Military Division – $526,202
• Homeland Security & Emergency Management – $61,614

Judicial Branch

• Reduces Judicial Branch FY10 appropriation by $11,373,135 – New total is $148,811.822
• The reduction reflects the 7.1 percent reduction implemented by the Judicial Branch

Department of Education

• State Library – Enrich Iowa – $179,608
• Empowerment – Preschool Tuition Assistance – $877,215
• Four-year-old Preschool Program – $1,194,569
• Textbooks for nonpublic school pupils – $62,563
• Core Curriculum & Career Information & Decision Making-System – $197,954
• Student Achievement & Teacher Quality – $892,428
• Community Colleges – $5,943,581 (operating budgets) – Supplemental does not revert and  can carry over to FY11
• At-Risk Children – $1,149,389
• K-12 Management Information System – $23,000
• Iowa Senior Year Plus Program – $140,556

Board of Regents – $31,360,500

• U of I – $14,371,621
• ISU – $10,839,521
• UNI – $5,227,665
• Iowa School for the Deaf $583,902
• Iowa Braille & Sight Saving School – $337,791
• Regents Institutions supplemental does not revert

General Assembly

• Increases the reduction to the Legislative Branch by $3,340,411 to reflect the 10 percent reduction implemented by the Legislative Branch.
• Total reduction for FY10 is $7,780,064

Department of Public Health

• Addictive Disorders – $2,627,532
• Healthy Children & Families – $329,267
• Chronic Conditions – $321,643
• Community Capacity – $23,000
• Elderly Wellness – $834,578
• Infectious Diseases – $203,970
• Public Protection – $23,248
• Center for Congenital & Inherited Disorders Central Registry – $20,684

Human Services – State Cases $100,163

Juvenile Delinquent Graduated Sanctions

• Directs the first $1 million from the Juvenile Detention Fund to be allocated to the Juvenile Graduated Sanction Services for FY10 to replace the across the board reduction.
• One time appropriation of $1 million for the Juvenile Graduated Sanction Services in FY10 from the Juvenile Detention Fund. Allocated the first $1 million from decaterization funding projects for FY09 to be diverted to the Juvenile Detention Fund to restore the reduction.

Nursing Home Facility Reimbursement

• Reduces the across-the-board cut to nursing home facilities from 5 percent to 3 percent.
• Suspends the Pay for Performance payments until June 30, 2010. 
• Provides flexibility in nursing home funding so they can better manage their cuts.
• All changes are contingent upon the federal government approving the Quality Assurance Fee. 
• This is estimated to be revenue neutral.

Infrastructure Deappropriations Total Reductions of $19.3 million

• Reduces – $27,764 from the lease payment for the electrical system supporting the special needs unit at Ft. Madison.  (FY08 appropriation)
• Reduces appropriation for construction of nursing home facilities from $1 million to $200,000 ($800,000) (FY08 appropriation)
• FY09 Appropriation for costs associated for a request for proposals for the implementation of a human resources module associated with the integrated information for Iowa System (I3) – reduced to $0 (- $200,000)
• FY09 Appropriation for a study for a 170 bed facility in the 5^th CBC is reduced from $200,000 to $96,654 (- $103,346)
• FY09 Appropriation for repairs to the historic Kimball Organ in Clermont is reduced from $80,000 to $55,000 (- $25,000)
• FY09 appropriation for renovation of nursing home facilities is deleted (- $600,000)
• FY09 appropriation for a study to enhance access to health insurance by registered child development home providers is deleted (- $50,000)
• FY09 appropriation for a Plasma Arc Energy Technology Study is reduced from $150,000 to $135,000 (- $15,000)
• FY10 appropriation is reduced from $45 million to $27.5 million (- $17.5 million)
• The $17.5 million reduction is taken from the amount appropriated to the Iowa Department of Economic Development for departmental purposes.

SF 2366 is effective upon enactment. [2/25: 30-17]

COMMITTEE ACTION

SSB 3238 relates to the Administration and Regulation Appropriations Budget.  It covers more than 25 departments, agencies and offices. This FY11 budget bill appropriates a total of $63.8 million. This is approximately a $2.8 million increase from the estimated FY10 budget, including $1.9 million because of funds being directly appropriated to the Department of Inspections and Appeals (DIA) rather than through transfers from the Department of Human Services. The Child Advocacy Board, which administers the Court Appointed Special Advocate (CASA) program, was held harmless. CASA trains volunteers to help protect the interests of abused and neglected children.  The program went statewide two years ago, and Senators did not want cut back this program, which protects the most vulnerable children. Other highlights include:

• State Accounting functions are moved from the Department of Administrative Services (DAS) to the Department of Management to conform to changes in SF 2088 (State Government Reorganization & Efficiency Bill). The appropriation is decreased $260,000 to reflect savings in administrative costs.
• Alcoholic Beverages Division is decreased $20,000 for savings associated with closing the distribution warehouse on Fridays as proposed in SF 2088.
• $350,000 increase to DIA to increase recoveries of improperly claimed Medicaid benefits as proposed in SF 2088. This expenditure is estimated to save $935,000.
• Continues last year’s efforts to have DAS reduce utility costs through energy conservation practices and reduce energy use by 10 percent to save money, conserve energy resources and reduce pollution. 
• DAS is directed to reduce the size of the state fleet, examine policies pertaining to when state vehicles are assigned and when employees take state vehicles home, and consider guidelines for when to sell and purchase new vehicles and submit a report by January 1, 2011. 
• The State Auditor is allowed to seek reimbursement for discretionary audits from restitution in any criminal or civil action, along with audits associated with various agricultural boards. 
• The Racing and Gaming Commission is provided up to $166,000 (2 FTEs) to be used if an additional gambling license is granted in FY11. [3/2:16-9]