Iowa Senate approves more money for Medicaid, other state needs

DES MOINES - Majority Senate Democrats voted Wednesday to approve an additional $115.5 million in spending for the current fiscal year to fund shortfalls in Medicaid and other state programs, despite GOP objections that the supplement was part of a budgetary 'shell game” to bypass spending limitations.

Included in the fiscal 2016 supplemental appropriations bill was an extra $80 million to help cover a projected shortage of state money to fund Medicaid payments through June 30. The amount was more than the $67 million Gov. Terry Branstad requested, but $7 million below the estimated need for fiscal 2016.

Senate File 2109 also included $3 million to fund indigent defense provided by the state Department of Inspections and Appeals and $1.9 million for the state Department of Corrections related to the closing of mental health institutes in Mount Pleasant and Clarinda.

The provisions that drew concern from Republicans were plans to move $30 million from the state's ending balance to the Rebuild Iowa Infrastructure Fund (RIIF) and designate $25 million in waging receipts for a new program that would use 'notwithstanding” language to free up more money to spend in fiscal 2017, where House and Senate negotiators disagree on the amount of state revenue available for budgeting.

Sen. Bob Dvorsky, D-Coralville, chairman of the Senate Appropriations Committee and floor manager of S.F. 2109, said the bill was designed to provide 'flexibility” in meeting state obligations for the current and upcoming fiscal years.

'We are not being fiscally responsible. This is the wrong way to go,” argued Sen. Mark Chelgren, R-Ottumwa. 'This is just simply the first step to a prolonged shell game” where funds are moved around to skirt a state spending limitations law designed to ensure fiscal discipline and responsibility.

Sen. Jack Chapman, R-Adel, called the Democratic maneuvers disappointing, calling them 'nothing more than budgeting gimmicks to feed what seems to be the never-ending appetite of spending.” All 24 Senate Republicans opposed the bill, while the 26 majority Democrats approved the supplemental measure.

Four Republicans did join 26 Democrats in supporting a separate measure that proposed to use $20.4 million in ending balance proceeds to fund a statewide land mobile radio communications system that would enable state, federal and local law enforcement agencies to better communicate during times of disaster or emergency.

Sen. Jeff Danielson, D-Waterloo, said Senate File 2155 was 'the result of lessons learned” during the Sept. 11, 2001, terrorist attack in New York City.

Sen. Julian Garrett, R-Indianola, noted that the two Senate bills would lower the state's projected surplus to $109 million next June 30 and set up the potential danger of 'completely depleting our ending balance” at the end of fiscal 2017.

However, Danielson noted the state's budget is balanced with 10 percent cash reserve and economic emergency funds that are full, along with a Aaa bond rating and one of the nation's lowest debt obligations, with state tax collections growing at a healthy 4 percent rate - an indication that 'currently the arrows are pointing up.”

The bills now go to the GOP-run Iowa House, where they face uncertain futures as the split-control Legislature attempts to work through disagreements over budget issues in both fiscal years 2016 and 2017.