The Iowa Senate unanimously approved budget reform legislation this week. House File 148 limits the ability of a governor to transfer funds when the Legislature is not in session. Currently, Iowa governors have some of the most liberal transfer authority in the nation, potentially undermining the Legislature’s constitutional duty to write the state budget.
The governor claims a two-year budget is essential to improving Iowa’s budget process. The facts, however, indicate otherwise. The track record of the last decade conclusively demonstrates that two-year budgets would actually increase uncertainty and miscalculation when it comes to Iowa’s budget. A historical analysis of non-partisan economic forecasts is below the fold.
Senate Budget Chair Bob Dvorsky’s statement on the Revenue Estimating Conference’s upgraded projections is below the fold.
Senate Majority Leader Mike Gronstal responded to updated revenue estimates saying, “The updated revenue estimates are more evidence of the negative impact of the national recession on Iowa workers, communities and businesses. Many Iowans across our state have lost their jobs. Many families are struggling to make ends meet. Everybody is cutting back, including state government.”
