Appropriations – Week of March 24, 2011

STAFF CONTACT:  Theresa Kehoe

SF 508 – Federal Block Grant FY12

SF 509 – Ag & Natural Resources BudgetFY12

SF 510 – Justice Systems Budget FY12

SF 511 – Judicial Branch Budget FY12

SF 512 – Indigent Defense FY11 Supplemental

SSB 1199 – Economic Development Budget FY12

FLOOR ACTION:

SF 508 authorizes the receipt and expenditure of federal funds totaling $6.3 billion for Federal Fiscal Year 2012 (FFY12). This is a decrease of $735.4 million compared to FFY11. Iowa will receive $196.3 million in federal specific block grants including Substance Abuse ($13.6 million), Community Mental Health Services ($3.4 million), Maternal and Child Health Services ($6.5 million), Preventive Health and Health Services ($1.1 million), Stop Violence Against Women ($1.6 million), Residential Substance Abuse Treatment for State Prisoners ($247,000), Law Enforcement Drug Policy “Edward Byrne Memorial” ($3 million), Community Services ($7.5 million), Community Development ($28.5 million), Low-Income Energy Assistance ($70.5 million), Social Services ($16.6 million), Child Care and Development ($43.8 million). [3/21: 48-0 (Seymour, Ward absent)]

SF 509 appropriates money for the Department of Agriculture and Land Stewardship (IDALS) and Department of Natural Resources (DNR) for FY12. The bill also includes money for wildlife and outdoor recreation programs, state parks, soil and water conservation efforts, air and water quality programs, and the Resource Enhancement and Protection (REAP) program.

General Fund Appropriations: IDALS will receive $16,872,308, which is a status quo level from FY11. The appropriation to IDALS includes $238,000 to Iowa State University for the Midwest Wine and Grape Industry Institute, which provides support for the wine and grape industry in the state. DNR is appropriated $12,716,688, a reduction of $731,916 from FY11. The bill also includes a general fund appropriation of $3,237,636 for the Veterinary Diagnostic Laboratory at Iowa State University, a reduction of $206,658 from FY 11. Also included is a new appropriation of $25,000 for agricultural education for future farmers.

Appropriations from other funds: The bill includes appropriations from the Fish and Game Protection Fund and the Environment First Fund (EFF). The amount of money appropriated to DNR from the Fish and Game Protection Fund is $38,793,154, the same as in FY11. DNR is allowed to use money in the Fish and Game Protection Fund to pay for salary adjustments for positions. This will help the DNR avoid layoffs, including boating safety enforcement on lakes during the summer months. The position of assistant to the chief of the law enforcement bureau is eliminated to provide funding for an additional conservation field officer.

The EFF appropriates $33 million, which is the same amount as FY11. The EFF includes funding for REAP, in addition to programs for soil, water and air quality and protection. The EFF now includes money for soil conservation cost share practices that were funded by capital bond appropriations last year. REAP is decreased from last year’s appropriation, but the bill does fund it at $12,375,000, which is $875,000 higher than the Governor’s level. Other significant changes from the Governor’s proposal are additional funding for state parks, forestry health management programs, and animal feeding operations regulation. The bill reduces funding for Loess Hills, and eliminates appropriations for Southern Iowa C&D and agricultural drainage wells. There are more than $5 million in funded agricultural drainage wells projects outstanding, and the bill calls for IDALS to prepare a report that identifies the remaining wells to be closed, a timeline for the closure of those wells, and a projected cost to close the wells. More information on funding changes for programs under the EFF is included below.

The bill provides a $200,000 increase in funding for motor fuel inspections paid for from the Renewable Fuels Infrastructure Fund. The bill also contains status quo appropriations from other accounts, including:

** Unclaimed winnings account for the Native Horse and Dog program.

** The snowmobile trust fund for program administration.

** The groundwater protection fund for programs outlined in Code (455E.11).

** The Underground Storage tank (UST) fund for administration expenses.

The bill also allows for the non-reversion of funds appropriated to the DNR from the UST fund for the development of a database for UST inspections and for technical review support of leaking UST assessments by nongovernmental entities. 

** Appropriates $400,000 a year for three years from the solid waste account of the groundwater protection fund for DNR to use to administer a derelict building clean-up grant program for projects in communities with a population of 5,000 or less. This program will be in coordination with the community beautification grant program operated by a statewide non-profit organization that was authorized last year for a four-year period.

Environment First Fund – Changes in funding from FY11: There are increases and decreases in funding for programs that are paid for from the EFF, including:
** A decrease of $500,000 for the Conservation Reserve Enhancement Program.
** A decrease of $600,000 for the Watershed Protection Program.
** A decrease of $25,000 for the Farm Management Demonstration Program.
** A decrease of $1.3 million for the Agricultural Drainage Wells Program. (The ADW program will continue with approximately $5 million of outstanding projects that are currently funded, but IDALS will compile a report to assess the options and cost for closure of the remaining wells.)
** A decrease of $300,000 for the Conservation Reserve Program.
** A decrease of $250,000 for the Southern Iowa Conservation and Development Authority.
** A decrease of $200,000 for the Loess Hills Conservation and Development Authority.
** An increase of $5.3 million for the Soil and Water Conservation Cost Share Program. (The cost share program receives an overall net decrease of $700,000 from FY11. The program received funding from capitals bonds and the EFF for FY11.)
** An increase $248,000 for Cost Share Administration expenditures.
** Increase of $640,000 for State Park operations and maintenance.
** Decrease of $88,000 for the Animal Feeding Operations Program.
** Decrease of $2.6 million for the REAP Fund.
** Decrease of $150,000 for the Resource Conservation and Development Fund.
** Increase of $100,000 for the Forestry Management Program.  [3/21: 27-21 (party-line, Hahn voting “yes”; Seymour, Ward absent)]

FLOOR & COMMITTEE ACTION:

SF 510 appropriates a total of $504.1 million from the General Fund and 5,858.9 FTE positions 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 $48.4 million and 727.2 FTE positions compared to estimated FY11. SF 510 appropriates a total of $13.2 million from other funds in FY12. The appropriations maintain current law and include $3.3 million and 22 FTE positions from the Department of Commerce Revolving Fund to the Office of the Consumer Advocate;  $9.8 million and 120 FTE positions from the Gaming Enforcement Revolving Fund to the Department of Public Safety, Division of Criminal Investigation. Highlights Include:

Department of Justice:
** General Fund decrease of $149,000 compared to estimated FY11. This is because of a $150,000 increase for the Office of the Attorney General to replace the one-time Public Safety Enforcement Fund (PSEF) allocation in FY11.
** $184,000 decrease for Victim Assistance Grants. Language requires at least $150,000 be transferred from the Victim Compensation Fund to Victim Assistance Grants.
** $116,000 decrease for Legal Services Poverty Grants.

Department of Corrections: An increase of $28.7 million, including $3.3 million to replace one-time funds from the Public Safety Enforcement Fund (PSEF); $5 million to fund existing filled positions; $825,000 to replace a Telephone Rebate Fund allocation and add funds for Corrections Education; $226,000 to fund constitutionally mandated religious counseling and legal representation; $2.3 million to fund 43 correctional officers (six at Fort Madison, 20 at Anamosa State Penitentiary and 17 at Clarinda Correctional Facility); $14.2 million to annualize the FY11 supplemental appropriations included in SF 209 (Tax Changes and Supplemental Appropriations Bill); $2.1 million to fund operating costs of new Community-Based Corrections (CBC) facilities in Waterloo and Davenport; $700,000 to replace expired federal funds to maintain Drug Courts in the First and Eighth CBC District Departments.

Office of the State Public Defender: Adds $13.6 million to the Indigent Defense Fund and the Office of the State Public Defender.

Department of Public Defense: General Fund decrease of $470,000 compared to estimated FY11 due to a general decrease of $353,000 to the Military Division and a general decrease of $117,000 to the Homeland Security and Emergency Management Division.

Department of Public Safety: An increase of $6.6 million, including $3 million to annualize the FY11 recommended supplemental appropriations in SF 209 (Tax Changes and Supplemental Appropriations Bill); $3.1 million to replace an FY11 federal grant for the Iowa State Patrol; $300,000 to replace one-time funds from the PSEF for the Iowa State Patrol; $123,000 for fuel for the Iowa State Patrol. [3/23: 26-22 (party-line, Seymour, Ward, absent)]  [3/17: 13-7 (party-line, Seymour excused)]

SF 511 appropriates a total of $156.5 million from the General Fund to the Judicial Branch. This is an increase of $6.2 million compared to estimated FY11, including $5.3 million to annualize the allocation from the Public Safety Employment Fund, $110,000 for furniture, and $800,000 for the Jury and Witness Fee Revolving Fund. Other highlights include:
** Requires the Judicial Branch to focus efforts on collecting delinquent fines and fees.
** 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 (ICIS).
** Permits the Supreme Court to order judicial officers to take unpaid leave in the same manner as noncontract employees of the Judicial Branch.
** Specifies it is the intent of the General Assembly that the clerks of courts operate in all 99 counties and be accessible to the public as much as is reasonably possible.
** Specifies it is the intent of the General Assembly that the Judicial Branch utilize the Iowa Communications Network or another secure electronic communications in lieu of traveling for FY12. [3/23: 26-21 (party-line, Seymour, Sorenson, Ward, absent)]  [3/17: 13-7 (party-line, Seymour excused)]

SF512 provides an $18.55 million FY11 supplemental for indigent defense costs. $2.55 million of the total is for the State Public Defender’s office. This supplemental is also contained in SF 209, which is currently in conference committee. [3/21: 27-21 (party-line, Boettger, Chelgren, Feenstra, Griener, Houser, Johnson, Kapucian, Kettering, McKinley, Zaun “yes”, Seymour, Ward absent)] [3/20: 20-1 (Dix “no”) ]

COMMITTEE ACTION:

SSB 1199 appropriates $37,239,337 for the Economic Development FY12 budget, which is $650,000 above the Governor’s budget proposal. Highlights include:
** Department of Cultural Affairs: at the Governor’s level $5,113,765
** Administration Division: $181,813
** Community Cultural Grants: $257,090
** Historical Division: $2,767,701
** Historic Sites: 426,398
** Arts Division: $933,764
** Great Places: $193,823
** Archive Former Governor’s Records: $65,933
** Records Center Rent: $227,243
** Battle Flag Stabilization: $60,000

Economic Development:
** The three divisions of IDED have been combined into one (Administration, Business and Community Development).
** IDED appropriation: $10,047,229 (Governor’s recommendation, minus $75,000 to ICVS and minus $150,000).
** World Food Prize is funded at last year’s level: $650,000.
** Historic Preservation Challenge Grants (Main Street Grants) is funded at Governor’s recommendation: $155,828.
** Iowa Commission on Volunteer Service (ICVS) is funded at $178,133 (Governor’s level plus $75,000, which is usually happens during a transfer).
** Board of Regents: at Estimated FY11 level which is $3,409,029 (ISU: $2,575,983, SUI: $222,372, UNI: $610,674).

Iowa Workforce Development:
** Labor Services Division: $3,495,440.
** Worker’s Compensation Division: $3,066,768 ($307,363 more than the Governor. In addition, we have added the $471,000 from Penalty & Interest, no longer will there be an appropriation for penalty and interest to Workers’ Compensation).
** Field Operations: $8,671,352 (please see other funds for an appropriation from the penalty and interest fund) In addition, we are keeping the language that states Workforce Development shall keep offices open.
** Offender Reentry Program: $284,464 (Governor’s level).
** Security Employee Training Program (a.k.a bouncer training) is not funded. The Department has indicated this program is not used.
** Employee Misclassification: $451,458 (Governor’s level).
** Public Employment Relations Board: $1,057,871 ($44 above the Governor).
** Iowa Finance Authority (IFA), Rent Subsidy Program: $658,000 (Governor’s level).

Other Funds:
** IDED Workforce Development Fund (withholding moneys): $4,000,000 (Governor’s level).
** Special Contingency Fund (a.k.a. Penalty and Interest Fund) for Iowa Workforce field offices: $1,217,084 (strikes the appropriation to Labor and Workers’ Compensation from the Penalty and Interest Fund, those funds are included in the General Fund appropriation).
** Iowa Workforce Field Offices, UI Reserve Interest: $4,238,260 (this is a true reflection of actual interest available).
** Nonreversion language for IDED on Site Development Consultants and FTE: This language allows IDED to finish the site certification program.
** Nonreversion language for Taiwan Trade Office which was authorized in HF 2531 in 2010.
** Extension for IWD on the integration plan for all of the Regional One-Stop Field Offices, extended from 2012 to 2014.
** Makes changes to the Shelter Assistance Fund. IDED has transferred this program to IFA. Originally, IDED was using Community Development Block Grant moneys to administer this program. When the program was changed to IFA no administer moneys went with the fund. In addition, federal legislation has required better data collection and evaluation regarding homelessness assistance funding. To administer, match federal funds and to evaluate the program, IFA needs to be able to use the moneys to run this program. [3/23:11-7 (party-line, McCoy, Seymour excused, Hatch “pass”)]