Appropriations – Week of March 15, 2010

STAFF CONTACT:  Theresa Kehoe

SF 2366 – FY10 Supplemental

SF 2376 – Education Appropriations FY11

SF 2377 – Judicial Branch Appropriations FY11

SF 2378 – Justice Systems Appropriations FY11

SSB 3252 – Transportation Appropriations FY11

HF 2519 – Federal Block Grant

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, $23.8 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 (does not revert)
• 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

 

Property Taxes

• Appropriates an additional $1,426,000 for Elderly & Disabled Tax Credit. This amount is needed to meet demand, according to Department of Revenue and Finance. The Elderly and Disabled Tax Credit was lowered due to the 10 percent across-the-board cut.

Performance of Duty

• Allocates $883,628 from the $25.6 million appropriated in FY10 for Performance of Duty for storm damage repair at the State Training School in Eldora.

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 $23.8 million

• Reduces $27,764 from the lease payment for the electrical system supporting the special needs unit at Ft. Madison. (FY08 appropriation)
• FY08 appropriation for construction of nursing home facilities from $1 million to $200,000 (- $800,000)
• 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 $23 million (- $22 million)
• A $22 million reduction is taken from the amount appropriated to the Iowa Department of Economic Development for departmental purposes. The new appropriation to IDED is $6.8 million for FY10. 

SF 2366 is effective upon enactment. [3/17:32-18]

FLOOR & COMMITTEE ACTION:

SF 2376 appropriates $844,371,902 to the Departments of the Blind, College Student Aid Commission, Education, and the Board of Regents and over 12,300 FTEs. Appropriations were made at the Governor’s recommended levels with a general 3.94% across-the-board reduction to meet targets unless otherwise noted. Supplemental appropriations were included in base unless appropriation came from transfers or one-time money.

Once all adjustments in funding are made for FY10 (supplemental bill), the estimated net FY10 funding is $856.8 million. This bill appropriates total General Fund dollars of $844.4 million, which is $12 million less than the final estimated net FY10 budget.

Department for the Blind:  $1,952,203

College Student Aid Commission Administration and Programs:  $59,319,139

The bill provides $59.3 million to the College Student Aid Commission. Highlights include:

• The Iowa Tuition Grants appropriations and language make the not-for-profit and the for-profit pro-rated increase of 3.6 percent over FY10 equal between the two line-item appropriations.
• The National Guard, Vo-tech Tuition Grant; the Nurse Loan Forgiveness and Teacher Loan Forgiveness has a 6.7 percent increase over FY10.

Department of Education Administration and Programs: $241,065,352

Highlights include the following:

• Voc-Rehab – $5,139,957. This is an increase of $500,000 to meet maintenance of effort (MOE) requirements. If the state does not meet this maintenance of effort, then the state will not received any federal dollars.
• State Library – $1,511,656
• Enrich Iowa – $1,796,081. This funding goes to local libraries. It was not decreased under this budget this year.
• Library Service Areas – $1,105,989 ($300,000 reduction per merging/retirements)
• Regional Telecommunication Councils – $1,065,180
• Vocational Education to Secondary Schools – $2,590,675
• School Food Services and FTEs – $2,176,797 (added FTEs Federal Match).
• Empowerment General Aid – $5,729,907 (no language changes)
• Assumes $1 million in savings/efficiencies per SF 2088, Government Reorganization
• Does not include $2 million from last year’s transfer from First Years First (one time money)
• Empowerment Preschool – $7,894,935 (no language changes).
  • Gov’s level minus FY10 supplemental transfer – one-time fund, not included in base
  • Family Support – $13,153,653 (general 3.94 % across-the-board; no language changes)
  • Birth to Age Three – $1,721,400
  • Preschool – $12,242,230 increase/new money (the rest is in school funding formula).
    • Language is added to fund all schools that apply for FY11. Funding will be allocated to each school applying.
    • Accredited Nonpublic Schools Textbooks – $600,987 (includes supplemental from FY10)
    • Beginning Administrator Mentoring – $195,196
    • Core Curriculum – $1,901,556
    • Student Achievement and Teacher Quality – $7,314,765.  This amount represents funding for

National Board Certification of $964,000; Mentoring and Induction in the amount of $4.1 million; Career Development Evaluator Training in the amount of $613,878; and Teacher Development Academies in the amount of $1.6 million ($309 million is included in the school aid funding formula)

• Community Colleges General Aid – $158,754,232 (increase of $10 million)
• Community College Salary – $825,012 (part of the $10 million increase over FY10)
  • Each community college general aid appropriation is broken out this year to better see what each community college is receiving in General Fund dollars.
  • Community College Efficiencies Report. Language is added requiring community colleges to submit a report to Department of Education explaining how community colleges achieved greater efficiencies and details on methods to achieve budget reductions. 
  • The following received no funding under this bill for FY11:
    • Community College Interpreters for Deaf (-$180,000)
    • Jobs for America’s Graduates (-$540,000)
    • Educational Excellence for American Indians (-$90,000)
    • Senior Year Plus (-$140,000)
    • for K-12 Management Information System (-$230,000)

Language changes:

• Teacher Salary Supplement (TSS) language – This is new language that clarifies last year’s HF 820 (federal block grant bill and ARRA funding) that $309 million specified in school aid funding formula for TSS will not be subject to an across-the-board cut. This includes Teacher Salary Supplement, Professional Development, and Early Intervention (all three appropriations are protected from an across-the-board cut). This is not retroactive.
• Community College Salary – New language says the $825,000 appropriation specified for instructor salaries shall not receive an across-the-board cut.
• Iowa Tuition Grants Appropriations and Language – New language makes the not-for-profit and the for-profit pro-rated reduction equal.
• Board of Educational Examiners (BOEE) – New language is added that reverses new BOEE administrative rule interpretation. Language clarifies legislative intent and codifies current practice of sharing complaint information. This is effective upon enactment.
• Combined Salary Schedules – New language is added to clarify last year’s policy bill (SF 445) and legislative intent for districts to have a combined salary schedule for teachers by striking the word “one” salary schedule and inserting “combined” salary schedule. This is effective upon enactment.
• Area Education Agency (AEA) Study – Adds new language that includes “funding options” for AEA’s as a facet of what the AEA Taskforce/Study set up in HF 2295 is required to consider and report recommendations.

Board of Regents – $542,035,207 total for General Aid and Specialty Appropriations

The Governor assigned $25 million in savings and efficiencies to the Regents. Under this proposal, the Legislature found $5 million more for the Regents. The net savings cost is $20 million under the SF 2376.

Because of this reduction per savings/efficiencies, no across-the-board cut was applied in various line items. STEM (Science, Technology, Engineering and Math) was reduced so General Aid lines were impacted $18.5 million for efficiencies instead of $20 million. Additional funding is appropriated from SF 2366, the supplemental bill, for the Regents as outlined below.

• Funding is appropriated to each of the state universities as follows:
  • UI -  $217,638,034 and 5,058 FTEs
  • ISU – $170,536,017 and 3,647 FTEs
  • UNI – $77,549,809 and 1,447 FTEs
• STEM Initiative – $1.8 million (reduction of $1.4 million and adds language requiring the program to focus on K-12 teacher recruitment/development and K-12 student STEM achievement)
• School for the Deaf – $8,679,964
• Braille and Sight Saving School – $4,917,362
• A reduction of $31,500, which was a one-time appropriation for the Price Lab School Engineering study.
• Midwestern Higher Education Consortium – no funding is appropriated this year.
• Iowa School Board Association was made subject to Iowa’s Open Records and Open Meetings laws.
• Allowed school districts to pool Physical Plant and Equipment Levy funds.  [Floor 3/16: 29-20 (Warnstadt absent); Committee 3/11: 16-9]

SF 2377 appropriates a total of $150.3 million from the General Fund to the Judicial Branch.

This is a decrease of $9.9 million. Highlights include:

• Requires the Judicial Branch to focus efforts on collecting delinquent fines and fees.

• Specifies legislative intent that the Offices of the Clerks of District Court operate in all 99 counties and be accessible to the public as much as reasonably possible.

• Requires the Judicial Branch to provide a semi-annual report to the LSA specifying the amount of fines, surcharges and court costs collected using the Iowa Court Information System.

• Requires the Judicial Branch to report to the General Assembly by January 1, 2011, regarding the

revenues and expenditures for the Enhanced Court Collections Fund and the Court Technology and

Modernization Fund. The report is to include revenues and expenditures for FY10 and planned

expenditures for FY11.

• Permits a judicial officer to waive travel reimbursement for any travel outside the judicial officer’s

county of residence.

• Specifies the Judicial Branch utilize the Iowa Communications Network or other secure electronic communications in lieu of travelling for FY11.

• Permits parties to a civil case, including a jury trial, to move the case to a contiguous county.

• Allows the Supreme Court to order judicial officers to take unpaid leave in the same manner as the

noncontract employees of the Judicial Branch. [Floor 3/16: 31-18 (McCoy absent; Committee 3/10:  14-9 (Fraise, Hogg absent)] 

 

SF 2378 appropriates a total of $484.1 million from the General Fund to the Departments of Justice, Corrections, Inspections and Appeals, Public Defense, and Public Safety, the Iowa Law Enforcement Academy, Board of Parole, and the Civil Rights Commission. This is an increase of $18.5 million.  Highlights include:

• Appropriates $3.3 million and 27.0 FTE positions from the Department of Commerce Revolving Fund to the Office of the Consumer Advocate. This is an increase of $197,000 for debt service.

• Establishes a Gaming Enforcement Revolving Fund and appropriates $8.9 million from the Fund to the Department of Public Safety for gaming enforcement. Receipts to the Fund are generated by billings to the gaming industry.

• Establishes a Public Safety Enforcement Fund and requires the Treasurer of State to allocate $8.8 million from the Fund to the Department of Corrections ($3.0 million), Department of Public Safety ($400,000), Civil Rights Commission ($100,000) and the Judicial Branch ($5.3 million). SF 2378 directs $8.8 million in court receipts to the Fund through increased court costs and fines for certain scheduled and non-scheduled traffic offenses and certain simple misdemeanors.

• Department of Justice – Legal Services Poverty Grants: An increase of $172,000.

• Department of Corrections (DOC): An increase of $23.2 million to partially restore the FY10

across-the-board reduction. 

• State Public Defender/Indigent Defense: A net decrease of $3.8 million.

• Department of Public Defense: An increase of $829,000.

• Department of Public Safety (DPS): A decrease of $2.0 million.

• Requires the DOC to use the John Bennett Facility at Fort Madison as either a prison facility or a

Community-Based Corrections (CBC) facility.

• Requires the DOC to employ two part-time nurses at the Luster Heights Prison Camp.

• Requires the DOC to operate the Luster Heights Prison Camp at its 88-bed capacity.

• Requires the DOC to spend at least $238,000 on the therapeutic treatment community program at the Anamosa State Penitentiary and $140,000 on the Dual Diagnosis Program in the First CBC District Department.

• Requires the DOC to use at least $300,000 in canteen receipts for Corrections Education.

• Eliminates the Chief Security Officer in the DOC Central Office.

• Requires the DOC and DPS to make every effort to preserve correctional officer and peace officer

positions through the reduction of administrative costs.

• Requires the Department of Justice to retain no more than 10 percent of the cash received in certain forfeiture proceedings.

• Increases the cap on the dollar value of inmate labor from $50,000 per maintenance project to $100,000 per maintenance project.

• Permits the chairperson of the Board of Parole to assume the duties of the Executive Director if

necessary. [Floor 3/16: 31-17 (Warnstadt, Zaun absent); Committee 3/10: 13-9 (Fraise, Hatch, Hogg absent)]

COMMITTEE ACTION:

SSB 3252 Appropriates a total of $350.7 million to the Department of Transportation (DOT). This includes $48.9 million from the Road Use Tax Fund, $301.8 million from the Primary Road Fund and 3,373.0 FTE positions. This is a net decrease of $1.6 million and 20.0 FTE positions compared to estimated FY10 levels.

Highlights include:

• Appropriates $3.9 million from the Road Use Tax Fund for driver’s license production and central

issuance. This is an increase of $162,000. The increase will provide the DOT with a total of $324,000 for electronic processing of payments for driver’s licenses.

• Appropriates $47.6 million and 312.0 FTE positions from the Road Use Tax Fund and Primary Road Fund for the Operations budget unit. This is an increase of $75,000 and 1.0 FTE position that are being transferred from the Highways budget unit beginning in FY11. The Department is creating a new Civil Rights position with the FTE position.

• Appropriates $37.2 million and 478.0 FTE positions from the Road Use Tax Fund and Primary Road Fund for the Motor Vehicles budget unit. This is a net decrease of $1.2 million and 20.0 FTE positions.

• Appropriates $237.6 million and 2,452.0 FTE positions from the Primary Road Fund for the Highways budget unit. This is a net increase of $1.3 million and decrease of 1.0 FTE positions.

• A decrease of $75,000 and 1.0 FTE position transferred to the Operations budget unit.

• An increase of $1.2 million for salt costs.

• An increase of $142,000 to support additional lane miles added to the State road system.

• Appropriates $3.4 million from the Road Use Tax Fund and Primary Road Fund for workers’ compensation costs. This is a decrease of $133,000.

• Appropriates $1.4 million from the Road Use Tax Fund for county treasurers’ support for issuing driver’s licenses. This is a net increase of $12,000.

• Appropriates $1 million from the Primary Road Fund for wastewater treatment improvements at 20 maintenance garages. This is a new appropriation for FY11 and is anticipated to be a seven-year effort requiring approximately $1 million each year.

• Amends an exemption from the restriction on all-terrain vehicles operated on highways under Code

Section 321.234A so that “incidental to the vehicle’s use for agricultural purposes” includes stopping to get fuel for the vehicle or food or a non-alcoholic drink for the operator.

• Included language contained in SF 2179 (backseat seatbelts for minors) as passed by the Senate on February 17. This requires children and teens under 18 years old to wear a seatbelt while riding in the back seat of a car. The bill includes an exception if there are not enough seatbelts for all of the backseat occupants. Under the bill, a violation is a simple misdemeanor with a scheduled fine of $25. [3/17: 17-8]

HF 2519 is the annual Federal Block Grant bill. It also appropriates the remaining funds in the Education Stabilization Fund and the Government Stabilization Fund of the American Recovery and Reinvestment Act (ARRA) funds. Iowa is estimated to receive $6.3 billion in federal funds in FY11 through existing appropriations from the federal government. The bill passed the House 53-41 on March 15, 2010.

The Federal Block Grant portion of the bill provides the mechanism for the state to receive $6.3 billion in federal funds for FY11, which is estimated to be $96.7 million more than what the state received in FY10. The state is estimated to receive $190.8 million in federal block grant funds in FY11 and $6.1 billion in federal funds that state agencies are anticipating to receive in categorical grants in FY11. Highlights of the Federal Block Grant funding are as follows:

• $13.5 million to the Department of Public Health for the Substance Abuse Block Grant, an increase of $46,655 over FY10.
• $3.5 million to the Department of Human Services for the Community Mental Health Services Block Grant, a decrease of $131,299 from FY10.
• $6.5 million to the Department of Public Health for the Maternal and Child Health Services Block Grant, an increase of $17,436 over FY10. 
• $1.1 million to the Department of Public Health for the Preventive Health and Health Services Block Grant, an increase of $49,764 over FY10.
• $1.4 million to the Department of Justice for the Stop Violence Against Women Grant Program, an increase of $88,960 over FY10.
• $250,000 to the Office of the Governor for the Drug Policy Coordinator for the Federal Residential Substance Abuse Treatment of State Prisoners Formula Grant Program, an increase of $172,640 from FY10.
• $3 million for the Edward Byrne Memorial Formula Grant Program appropriation to provide the Federal Local Law Enforcement Block Grant appropriation to the Office of the Governor for the Drug Policy Coordinator, an increase of $1.9 million from FY10. 
• $7.5 million to the Department of Human Rights for the Community Services Block Grant, an increase $493,377 from FY10.
• $26.2 million to the Department of Economic Development for the Community Development Block Grant, an increase of $540,724 from FY10.
• $67.8 million to the Department of Human Rights for the Low-Income Energy Assistance Block Grant, an increase of $31 million from FY10.
• $16.7 million to the Department of Human Services for the Social Services Block Grant, an increase of $67,233 from FY10.
• $43.6 million to the Department of Human Services for the Child Care and Development Block Grant, an increase of $323,883 from FY10.

Federal American Recovery and Reinvestment Act of 2009 (ARRA)

This division of the bill lays out the allocation of the American Recovery and Reinvestment Act (ARRA) funds for Education Stabilization and the Government Services Stabilization Funds. The allocation of ARRA funds are for FY11. The bill expends $47.9 million of the remaining ARRA funds: $25.3 million of the Education Stabilization and $22.6 million of the Government Services Stabilization Funds. An overview of Division II is as follows:

Applicability of Appropriations – Transfers – Unanticipated Funds – This section clarifies the receipt of the unanticipated ARRA funds and that the provisions in Division I of this bill do not apply to the ARRA funds. If it is determined by the Department of Management (DOM), with the written consent of the Governor, that ARRA funds are available without any match requirement and have not been appropriated in this division of the bill or are provided through federal match of state or local funds that have been appropriated, then the appropriations apply.

This provision also provides the DOM the use of transfer authority, with the written consent and approval of the Governor. The transfer authority would allow appropriations made from the ARRA funds to appropriations made from the General Fund in FY09 and FY10, provided the transfers are made in the same fiscal year. The transfers are subject to the notice provision of 8.39, which requires the chairs of the budget subcommittees in the House and Senate to receive the transfer notice 14 days in advance to review and comment before the transfer is made.

K-12 School Aid Funding in Lieu of State Aid – This section appropriates $25.3 million of the Education Stabilization and $22.6 million of the Government Services Stabilization Funds in lieu of $47.9 million in state aid appropriations for K-12 School Foundation Aid Formula.

FY09 Community Development Block Grant – The Department of Economic Development is directed to expend $7 million of ARRA Community Development Block Grant funds for infrastructure improvements, improved energy efficiency, expand educational opportunities and access to health care; and allows 6 percent to be used for administration and auditing costs. This provision applies retroactively to October 1, 2008.

FY09 Community Development Block Grant – Disaster Relief – This is corrective provision from the Department of Economic Development to recognize the $516.7 million the state received in FY09 from federal Community Development Block Grant Funds for disaster assistance.

Effective Upon Enactment – Division II of the bill is effective upon enactment. [3/17: 15-9 (Warnstadt absent)]

Posted Mar. 18th, 2010 at 8:23 am by Senate Staff