Democrats move ahead to prevent shutdown; New budget meets top two Republican demands (Video)

Senate Democrats today began work on a comprehensive set of budget bills that meet the most essential needs of Iowans. Democrats say the package will also meet the top two demands of Governor Branstad and House Republicans: Spending less than $5.99 billion and approving a two-year budget.

“We believe this budget will prevent a government shutdown by making spending cuts while still investing in our future,” said Mike Gronstal of Council Bluffs, the Majority Leader of the Senate. “The budget we will pass this week is the best we can do for Iowans while still meeting the Republicans’ top two demands.”

“If the Governor and House Republicans accept this deal, state parks will be open for Iowa families on the 4th of July holiday, our neighborhoods and communities will be safe for our children and grandchildren, and tens of thousands of Iowa workers and their families will get their paychecks on time,” said Senate President Jack Kibbie of Emmetsburg.

Senator Robert Dvorsky of Coralville, chair of the Senate Appropriations Committee, said Democrats fought hard in negotiations to avoid a two-year starvation diet for Iowa schools, to preserve key job-creation efforts, and protect the pocketbooks of Iowa taxpayers.

“This budget compromise is a balanced budget that does not raise taxes, keeps our savings accounts full, and continues helping Iowans recover from the national recession,” Dvorsky said.

Taken as a whole, the compromise budget spends less than $6 billion. That is 97% of net receipts plus transfers as estimated by REC (Revenue Estimating Conference). It is 94% if you count all revenues estimated by the REC and the carryover from the reserve funds for FY 2012. Iowa’s reserve funds remain full at approximately $600 million and the current budget year is expected to end on June 30 with an additional surplus of roughly $400 million.

Gronstal said the new Senate Democratic budget proposal responses to concerns raised by Iowans worried about the consequences of a state government shutdown and woefully inadequate investment in our schools and job creation efforts.

“We all know there are tough challenges ahead, from growing our economy to improving our schools to ensuring that all Iowans have access to affordable health care,” Gronstal said.

“Iowans want us to conclude these difficult negotiations in time to prevent a government shutdown. That’s why Senate Democrats are putting the Legislature on track to do just that before the July 1 deadline by approving this compromise budget.”

Democratic Compromise:
Saying “Yes” to pieces of HF 697 and other Republican proposals

Click here to download this list as a PDF.

• Big Picture

1. A general funding spending limitation of $5.999 billion
2. Compromise on two-year budget
3. Compromise on preschool

• HHS

1. Child Care at fitness centers
2. Dependent adult language
3. Volunteer dental services language
4. Prescription Drug Reimbursement study
5. False claims act fixes
6. Mental health drugs
7. HOPES intent language
8. New language on juvenile detention study
9. ACO pilot language
10. E-health state plan amendment for IME
11. Transfer language for IME
12. Iowa Care Changes
13. Toledo Eldora transfer language
14. Homeland Security language
15. Pharmaceutical Take-Away program
16. Prevention of Disabilities Council sunset date
17. Striking hawk-I premium language
18. Veteran’s Lebanon language
19. Hearing aid language
20. IFA revolving fund language in HHS
21. Collaborative admin funding language
22. Iowa Nebraska Primary Care name change

• Ways & Means

1. EITC

• Admin & Reg

1. Leasing Authority Implementation
2. Travel Reimbursement Implementation
3. Auditor of State Requirement
4. Governor’s office appropriation
5. Rescinding Food inspections
6. New vehicle purchases of alternative fuel vehicles
7. Limit on claims – Convention expenses
8. Executive Branch Employee Travel training
9. Gaming regulatory revolving fund requirements
10. DHS trips to other states reimbursements
11. Commerce revolving fund requirements
12. Travel expense for dept. of corrections employees
13. Information technology
14. Sale or lease of ICN
15. Medication therapy management
16. Effective dates

• Economic Growth

1. Targeted jobs withholding agreements

• Education

1. 0 percent allowable growth for FY12
2. Books sales at libraries – contingent upon Senate language on library reorganization
3. Replacing Osteopathic Forgivable Loan Program and the Des Moines University Physician Recruitment Program with a Health Care Professional Recruitment Program
4. Changing compulsory attendance age to school age for home school assistance program (HSAP)
5. Modifying prohibition for expenditure of HSAP funds
6. Permitting students attending Waldorf College to receive grants from the For-Profit Iowa Tuition Grant Program.
7. Approving Department of Education FY11 transfers from TQ to various other programs (MOE issue)