APPROPRIATIONS-Week of March 26

SF 2314 – FY13 Transportation Budget

SF 2313 – FY13 Administration & Regulation Budget

SF 2324 – FY12 Iowa Workforce Development Budget

FLOOR ACTION:

SF 2313 is the FY13 Administration and Regulation Budget. Below is a summary of SF 2313 as passed by the Senate and highlights of House amendment S-5114.

As passed by the Senate, SF 2313 appropriates $56.8 million from the General Fund for the Administration and Regulation FY13 budget. This is an increase of $4.1 million. The bill also appropriates $50.7 million from other funds, a decrease of $3.1 million. Highlights include:

** Funding a Medication Therapy Management Program with a transfer of $510,000 from Board of Pharmacy fees. The transfer is contingent on legislation establishing the Program during the 2012 session.

** Maintaining the current level of funding for Department of Administration Services, Auditor of State, Governor’s Office, Department of Human Rights, Department of Human Rights, Office of the Secretary of State, Office of the State Treasurer and Department of Revenue.

** Increasing the Iowa Ethics and Campaign Disclosure Board by $35,000 to upgrade entry-level auditor positions to field auditors.

** Appropriating $1.8 million from the General Fund and $24.1 million from other funds to the Department of Commerce. This is a status quo appropriation from the General Fund and an increase of $247,000 from other funds to the Banking Division for additional bank examiners and a $65,000 increase to the Credit Union Division for an additional credit union examiner.

** Appropriating $993,000 from the General Fund to the Iowa Telecommunications & Technology Commission for Regional Telecommunications Council. This item was previously funded in the Education Budget.

** Appropriating no funding and two FTEs from the General Fund for the Governor’s Office of Drug Control Policy. This is a decrease of $290,000. The responsibilities of the Office will be addressed in other legislation.

** Appropriating $12.9 million from the General Fund and $7.4 million from other funds to the Department of Inspections and Appeals. This is an increase of $3.4 million from the General Fund and a decrease from other funds to shift funding from the Medicaid Fraud Fund.

** Repealing the FY13 Medicaid Fraud Fund appropriations of $670,000 to the Department of Inspections and Appeals for assisted living and adult day care services that was provided in HF 649 during the 2011 session.

** Authorizing members of the Legislature to receive per diem, travel expenses and actual expenses while serving as members of the Deferred Compensation Advisory Board.

** Appropriates $80,000 for two FTEs at the Office of Drug Control. This will draw down approximately $183,000 in federal funds. Senate Democrats have proposed to house the office in the Department of Public Safety.

As amended by the House with S-5114, SF 2313 appropriates $49.6 million from the General Fund, a decrease of $3.1 million over FY12; $54.1 million is appropriated from other funds, an increase of $298,000 over FY12. Highlights include:

** Dept. of Administrative Services (DAS) – Decrease of $3.5 million. This includes eliminating the $3.3 million General Fund appropriation for the I/3 Distribution Account. This appropriation was used to reduce billing to State agencies for I/3 usage.

** Auditor – $27,000 reduction

** Ethics and Campaign Disclosure Board – Status quo

** Department of Commerce – Decrease of $54,000 from the General Fund; $737,000 increase in other funds.

** Utilities Board – Contingent appropriation of $250,000 and 3.5 FTEs if legislation for permitting and construction of a nuclear generation facility is passed.

** Iowa Telecommunications & Technology Commission – Status quo. This appears to be an increase. This budget item was previously funded in the Education Budget.

** Governor’s Office – $68,000 decrease

** Governor’s Office of Drug Control Policy – no change in funding but a decrease of 2 FTEs.

** Department of Human Rights – $67,000 reduction

** Department of Inspections & Appeals (DIA) – Increase of $362,000 to shift funding to the General Fund from the Medicaid Fraud Fund. There is a $3 million increase from the Medicaid Fraud Fund.

** Department of Management – $71,000 decrease

** Department of Revenue – $521,000 decrease

** Secretary of State – $85,000 reduction

** State Treasurer – $25,000 reduction

** Authorizes members of the General Assembly to receive per diem, travel expenses and actual expenses while serving on the Deferred Compensation Advisory Board.

** Requires the Auditor to complete the audit on the Comprehensive Annual Financial Report (CAFR).

** Requires the Department of Revenue to prepare and issue a State Appraisal Manual at no cost to cities and counties.

** States that the Secretary of State cannot be charged a fee by state agencies that provide data processing services for voter registration file maintenance.

** Gives the Secretary of State discretion in FY13 to refund the $50 fee for certificates of organization and the $100 fee for applications for certificates of authority for limited liability corporations.

** Allows the Insurance Division to carry forward funds from FY12 to pay for the Division’s relocation costs in FY13.

** Allows DAS to carry forward unobligated utility funds to FY13.

** Workers’ Comp Fund moneys carry forward for payment of claims and administrative costs in FY13.

** Requires DIA to submit a report to the General Assembly by January 10, 2013, regarding the fiscal impact of adding positions relating to the Medicaid Divestiture Program.

** Transfers the Medicaid Fraud Fund to the Health Care Trust Fund (FY14). [3/26: The Senate refused to concur with the House amendment S-5114 on a voice vote. SF 2313 now returns to the House for their further consideration.]

SF 2314 appropriates $350.44 million to the state Department of Transportation (DOT). This includes $47.4 million from the Road Use Tax Fund and $303 million from the Primary Road Fund. This is a net increase of $4.6 million. The bill designates reporting requirements regarding the implementation of efficiency measures identified in January 2012. The DOT is required to submit quarterly electronic reports to various related legislative committees and the Legislative Services Agency concerning one-time and long-term efficiencies and partnerships. The first report is to be submitted by October 1, 2012. The Senate adopted a House amendment that:** Cuts $280,000 from Operations and $800,000 from the Highways Division of the FY12 Transportation budget. House Republicans have stated that the cuts reflect lower utility costs due to the mild winter.

** Cuts the FY13 appropriation for scales by $200,000

** Cuts the FY13 appropriation for the printing of maps by $161,333. [3/26:45-5 (Chelgren, Feenstra, Kettering, McKinley, Zaun, “no,”)]

FLOOR & COMMITTEE ACTION:

SF 2324 restores FY12 funding to Iowa Workforce Development for Workforce field offices, the Labor Division, the Workers’ Compensation Division, the Employee Misclassification Program and the Offender Reentry Program. The Iowa Supreme Court found that Governor Branstad’s veto of funding for workforce field offices last year was illegal. Governor Branstad item-vetoed restrictions and conditions on appropriations in SF 517 (last year’s bill) that would have kept all 55 workforce field offices open. The Supreme Court ruled that because of the Governor’s illegal veto, all funding for the Department of Workforce Development was void. SF 2324 appropriates the same amount of funding that was appropriated in SF 517 last session. [3/28: 48-1 (Chelgren “no”; Houser excused)] [3/28: short form (McCoy excused)]