Under pressure of a state law that requires a balanced budget, Iowa lawmakers are looking for ways to cut spending that has already been trimmed to the bone.
At the top of Republican Gov. Terry E. Branstad`s agenda for reducing state spending is a plan to reorganize and reduce the size of state government. Under this plan, the state`s existing 68 departments would be merged into 19.
However, Democrats, who control both the Iowa House and Senate, are uncertain whether the reorganization downsizing actually will benefit Iowans. ”We want to make sure services are excessive before we get rid of them,”
said Rep. Minnette Doderer, chairman of the House Ways and Means Committee.
Doderer calls the governor`s proposal ”just another euphemism for budget cuts” that would cost 963 state employees their jobs and would force another 100 to retire early.
Dave Roederer, Branstad`s chief legislative liaison, claims that a sizable portion of the 963 jobs at stake would be on the administrative level. Another Branstad recommendation is to freeze virtually all state spending without allowances for increased operating costs. The few programs that would receive recommended increases from the governor would be getting far less than they had anticipated at the beginning of the fiscal year which began July 1.
According to State Comptroller William Krahl, no tax increase–Iowa`s only means of generating substantial revenue–has been proposed by either the Democrats or Republicans.
Krahl noted that steadily declining revenue from state-controlled liquor sales has hurt the general fund. Liquor-sale revenue for fiscal year 1987 is projected at $33.2 million, down from $37.6 million in fiscal 1985.
In addition, revenue from the sale of tickets in the Iowa lottery has fallen far below projections made at its debut last summer. While this does not affect the state`s general fund, Krahl said, programs designed to spark economic development and interest in Iowa will be receiving less than originally intended.
Although Democrats have pledged to spend no more than the governor proposes to balance the budget, battle lines are being drawn over the programs that will bear the brunt of reductions.
Both sides claim to support Iowa`s ”commitment to excellence in education.” However, Democrats have proposed spending about $17 million more than the governor has recommended.
According to the Iowa State Education Association, primary and secondary education in the state has lost $102 million from across-the-board cuts since 1981–the most recent one occurring last September when the governor ordered a 3.85 percent cut in all state spending.
Jan Reinicke, a lobbyist for the ISEA, accuses Branstad of being ”the biggest stumbling block” to accomplishing the state`s educational goals. She added that approximately 2,000 teachers will be laid off under Branstad`s budget recommendation.
She said signs point to a deterioration in Iowa`s educational quality. Such signs include salaries that lag behind the rest of the nation, declining test scores in some areas and widespread use of outdated instructional materials, she said.
Dick Vohs, the governor`s press secretary, maintains that Branstad is committed to excellence in education, pointing out that education accounts for 55 percent of the total state budget.
Faced with a frozen budget that does not allow for higher operating costs, the State Board of Regents has warned the legislature that drastic tuition increases may be implemented if the state does not increase appropriations for universities.
Branstad also is recommending that $5.5 million be cut from the budget of the Department of Human Services. But the Democrats have asserted they will try to retain the $5.5 million, despite the governor`s claim that the cuts would affect the administration of the department, not its services.
Although Democrats are committed to preserving education and human services in the state, they have not proposed alternative cuts.
