The House released the targets and balance sheet for the budget for fiscal year 2013 (FY 13) last week. The House Republican plan is based on three principles: aligning ongoing spending with ongoing revenue, ending the practice of using one-time money for ongoing expenses, and not intentionally underfunding entitlement programs.
In polls over the past several years, Iowans have been concerned about two things: 1) jobs and the economy and 2) debt and spending. Not only does this budget control spending, but the conservative approach to spending gives stability and certainty to Iowa’s job creators by prioritizing and funding the long term needs and goals of Iowans.
Republicans continue a line by line review of the department budgets to shrink government spending. Next week, the government efficiency bill will be released with estimated $20 million in savings projected.
The Republican budget plan includes several key components:
- Funds Iowan’s priorities including: education, health care, public safety, and property tax credits, preserving any ending balance in the Taxpayers Trust Fund.
- Represents a conservative one percent growth. The plan spends just 97 % of ongoing revenue.
- Asks all employees, including state legislators to contribute at least $200 per month toward their own health care costs. Over 80 % of state employees continue to pay nothing for their health insurance. The House has passed several bills to address this inadequacy and has built this budget on those funds.
- Adds $20 million for allowed growth for mental health and disabilities services and $30 million for the system redesign.
The House proposal is below the Governor’s and Senate’s budget. The Senate Democrats released their targets last week but not the complete balance sheet. The budget for FY 12 was $5.99 million and came in right under the ongoing revenue for the year.