Appropriations Committee Report – Week 4, 2017

SF 130 – FY17 Deappropriations



SF 130 deappropriates a net of $113.3 million from the FY17 general fund budget. These cuts would leave estimated cash on hand of $700,000 on June 30, 2017. Below are highlights:
[1/26: 28-19 (party-line; Bertrand, Horn, D. Johnson absent)]


SF 130
FY17  Deappropriations $92,497,000
Transfers from Funds $25,135,000
FY17 Supplemental -$4,300,000
Net deappropriations $113,332,000
Estimated COH FY17 $700,000
Significant Funding Increases – Supplemental (in millions)
Indigent Defense $4.300
Significant Deappropriations/Cuts in Funding (in millions)
Board of Regents $18.000
Department of Human Services (DHS) $22.000
Department of Corrections $5.500
DHS – Medical Asst. $13.850
Community Colleges $3.000
Judicial Branch $3.000
Department of Education $4.527
Department of Public Safety $1.000
Department of Public Health $2.000
Legislative Branch $0.600
Department of Revenue $1.200
Department of Ag & Land Stewardship $0.400
Workforce Dev. $0.500
Attorney General $0.598
State Public Defender $0.457
Department of Economic Development $0.700
Department of Natural Resources $1.300
Department of Aging $0.400
Inspections & Appeals $0.300
College Aid Commission $0.390
Iowa Public Television $0.200
Iowa Veterans Home $0.200
Department of Administrative Services $0.262
Department of Public Defense $0.241
Vocational Rehabilitation $0.000
Department of Cultural Affairs $0.210
Department of Vets Affairs $0.000
Department of Management $0.000
Secretary of State $0.000
Department of Human Rights $0.087
Homeland Security $0.000
Department of Commerce $0.000
Department for the Blind $0.000
Governor’s Office $0.000
Public Employment Relations Board $0.000
State Treasurer $0.000
Iowa Law Enforcement Academy $0.000
State Auditor $0.000
Board of Parole $0.000
Drug Control Policy $0.000
Executive Council $0.000
Public Information Board $0.075
National Guard Ed Assistance Program $0.000
Dept. Operational Reductions $11.500
Total $92.497
Revenue Adjustments – FY17
FY17 IRC Update (no Sec. 179) $0.000
Transfers – FY 17 (in millions) Cash Balance
Taxpayers Trust Fund $0.000 $8.20
Cultural Trust Fund $6.135 $6.10
Strategic Investment Fund $1.000 $10.20
Innovation & Commercialization Fund $2.000 $9.80
Economic  Development Energy Projects $2.000 $12.60
Grow Iowa Values Fund $12.000 $38.60
Federal Economic Stimulus Fund $2.000 $2.10
Subtotal Transfers $25.135


Other provisions include:

Open Spaces – Park Maintenance: Uses $1 million from REAP Open Spaces Account for state park maintenance in FY17.


Iowa Veterans Home carryover surplus transfer: Transfers $350,195 from FY16 surplus funds to the College Student Aid Commission for the National Guard Educational Assistance program.
Reallocations to Health & Human Services-related appropriations

  • Provides a net reduction of $22 million from the General Fund to various non-Medicaid programs operated by DHS; $16 million of this reduction is backfilled by an increase in TANF funds.
  • This also realizes savings in the Medicaid program by eliminating the state’s share of DSH payments, which totals $3 million and reduces the lodging allocation for the University of Iowa Hospitals & Clinics by $150,000 to meet the projected demand. These savings combined with $23.5 million in internal “savings” identified by the DHS result in a cut to Medicaid by $13.9 million and address the FY17 projected shortfall of $14.5 million.

Operational expenditures reductions – $11.5 million

  • Reduces FY17 operational expenses from the Executive Branch by $11.5 million.
  • Operational purposes include but are not limited to state agency office supplies, outside services purchases, equipment purchases, printing and binding, information technology, marketing and state employee travel.
  • Operational expenses may also include a moratorium on filling vacant or newly created positions from March 1, 2017 through June 30, 2017.
  • Department of Management, in consultation with each department, applies the reductions. DOM must submit a report to the Legislature and to the Legislative Services Agency within 30 days of the effective date of this section.

Legislators’ per diem – 2017 session: Reduces Legislative per diem from 110 days to 100 days. This is estimated to save $380,000.
Legislative staff travel: From the effective date of this section through June 30, 2017, costs for out-of-state travel and per diems for members of the Legislature and for legislative staff will not be paid from the General Fund (2.12).