Culver says special session not needed

DES MOINES – Gov. Chet Culver said Tuesday the fiscal 2009 budget numbers are playing out as projected and he expects to balance any shortfall in revenues with existing authority and no special legislative session.

Shortly after fiscal 2009 ended June 30, Culver said lower-than-expected state revenues and other factors could result in a shortfall of about $58 million, and that whatever budget shortfall might ensue could be erased with a $45 million ending balance and up to $50 million he has the authority to temporarily transfer from the state's cash reserve.

With state agencies finalizing their year-end accruals, revenues and other data based on an Aug. 31 cutoff, Culver and his budget experts said the assumptions appear to be holding form with favorable tax refund totals, higher lottery profits and other factors that have offset slumping tax collections. The final balance sheet should be released by the end of September, said Culver budget director Dick Oshlo.

“Everything looks as we had projected in terms of having enough to balance in '09 and we feel good about that fact,” Culver told reporters Tuesday. “We don't think a special session will be required.”

The governor said options for dealing with declining state revenues in the current fiscal year won't be finalized until the state Revenue Estimating Conference meets on Oct. 7. “I expect we'll be able to close the books officially on '09 and start looking at making sure we balance in '10,” he said.

Rep. Rod Roberts, R-Carroll, a 2010 Republican candidate for governor, urged Culver to “end his ignore and delay budget practices” and call the Legislature into special session to make spending reductions in the current budget year that address declining revenues.

The five-term state representative said the Legislature should be reconvened to resolve what he viewed as the state's budget crisis, rather than waiting another month to consider adjustments as Culver has proposed.

“Gov. Culver needs to end his ignore and delay budget practices,” Roberts said in a statement. “Everyone knows the state budget -- past, present, and future -- is out of order. Iowans need leadership on the state budget. Now is not the time to put off the state's budget problems. Now is the time to address them.”

Contact the writer: (515) 243-7220 or rod.boshart@gazcomm.com