County departments fear state government shutdown

CEDAR RAPIDS - Iowa lawmakers will debate a new budget proposal this week with hopes of breaking a stalemate.  The third stop in a 43-city tour brought Governor Terry Branstad in Cedar Rapids Monday.  In the midst of a budget battle in Des Moines, Branstad says he and fellow Republicans have a new plan that Democrats should approve.  But he says it won't come without major cuts.

“We inherited a mess; we have to pay all these obligations the previous administration obligated.  Yes, agencies are going to have smaller budgets, they're going to have to find more efficient ways to deliver services with fewer people, but I have confidence they can do it,” said Branstad.

But the agencies Branstad's referring say they don't know just how much they'll need to cut back until the budget is passed. The stalemate at the State House has some agencies fearing a government shutdown.  If a budget isn't passed before the July 1st deadline, that means no state money for county departments.

Despite the Governor's reassurance that a budget will pass before July 1st, some county agencies say they have to prepare for the worst. And key services sit on the chopping block.

“We think we can probably get through one month maybe two and we hope any shutdown won't last that long,” said Linn County Mental Health and Developmental Disabilities Director Craig Wood.

Budget woes in Des Moines mean six million state dollars in limbo for Linn County Mental Health.

“We don't know if we're going to cut services July 1, be on a waiting list July 1, or be able to provide services status quo July1,” said Wood.

Wood says they'll pay county workers, fund service providers, but will stop one big payment.

“If we don't get state money we're not going to pay state bills. When they pay us, we'll pay them,” said Wood.

A shutdown could also affect the nearly 2,800 Iowa National Guard soldiers in Afghanistan. Federal funding largely supports Linn County Veterans Affairs, but some state dollars fund two grants.  A $5 million trust fund helps veterans in emergency situations. Emergencies can include repair after a house fire, rent payments, utility payments, etc.

“Our economy isn't up to 100% or for the trust fund like a fire we use that trust fund.  We used that trust fund a lot in the 2008 flood,” said Linn County Veterans Affairs Director Donald Tyne.

And one million state dollars fund the Injured Veterans Grant. Each family gets $2,500 or up to $10,000 for extended stay.

“If you son or daughter is seriously injured you want to be by their bedside.  This grant would pay to fly them there and any hotel accommodations,” said Tyne.

Three Iowa families tapped into that fund when these three soldiers were injured in Afghanistan in May. So what happens or doesn't happen in the state house impacts people far removed from the legislature.

“If there's still no state money we would have to reduce services even further,” said Tyne.

Wood says their goal is to limit the impact of the possible shutdown on their clients.  But if there's a shutdown and it drags throughout the summer, Wood says all agencies dependent on state funds will have to make cuts.