House passes health, human services spending bill with big cuts

DES MOINES - The Iowa House approved a health and human services funding bill Thursday with steep spending cuts that is expected to mean layoffs of state workers.

The bill spends close to $1.25 billion next year, a decrease of more than $110 million over this year.

"This is a tough year with declining revenue," said Rep. Lisa Heddens, D-Ames, who guided debate on the spending bill.

Heddens said lawmakers worked hard to preserve funding for older Iowans and children. Because of other sources of funding, including federal stimulus dollars, the cuts are less than they could be.

But a large share of the federal stimulus dollars will be used to help pay for Medicaid, the state's health care program for the poor. Medicaid's total budget will top $830 million next year as its rolls have grown.

Five departments will be required to find efficiencies in their budgets to reduce spending by 5 percent this year and next year. Those departments include Elder Affairs, Public Health, Human Services, Veterans Affairs and the Iowa Veterans Home.

The spending plan approved by lawmakers requires DHS to put its hiring priority on positions related to child protective and direct services.

DHS could potentially lose an estimated 250 to 400 positions. Sen. Jack Hatch, D-Des Moines, has predicted that budget cuts will mean that waiting lists for mental health services will grow and child abuse services will suffer.

Rep. Dave Heaton, R-Mt. Pleasant, voted against the spending plan, voicing concerns that it used money that would be only available one time to prop up spending.