Culver optimistic state can save $300 million via efficiencies

By Rod Boshart

Des Moines Bureau

DES MOINES – Gov. Chet Culver said Monday he is confident state government can achieve at least $300 million in savings by June 2011 through efficiencies and streamlining efforts implemented by executive order and legislative action.

The governor also indicated a new legislative proposal to generate an estimated $25 million in extra state revenue through expanded gambling would not be part of the fiscal 2011 budget plan he submits to lawmakers on Wednesday.

Last week, House Majority Leader Kevin McCarthy, D-Des Moines, said a group of legislators were working on a proposed change that would allow Iowa casinos to host large-scale poker tournaments. If approved, the proposed change would broaden gambling options and bring in tens of millions of tax revenue for the state coffers.

On Monday, Culver told reporters it was the first he'd heard of the proposal, but he would be willing to hear what lawmakers have in mind -- although he has not included any gambling-related initiatives in the fiscal 2011 spending plan he is crafting.

“I don't think it's an official Iowa legislative session without a discussion or debate on gambling. It wouldn't surprise if there's the political will upstairs to talk about some form of expansion,” the governor said. “If they want to talk about it, I'm willing to sit down.”

In the meantime, Culver said he is optimistic that lawmakers will successfully approve at least $200 million in savings from reform and reorganization efforts. He noted that projected savings initially made by the nonpartisan Legislative Services Agency only covered a small share of the 50 recommendations made by a consulting firm he hired to identify cost-cutting measures.

“I think we have an opportunity to save $200 million or more,” he told reporters. “I am very confident that we have an opportunity to save in excess of a couple hundred million dollars legislatively, plus the $100 million or more than I believe we can save by executive order.”

Culver commended lawmakers for making “tremendous progress” in the first two weeks, including Senate passage of an early-retirement incentives available for senior state employees that could save state government up to $60 million.

On another topic, Culver administration officials indicated they expected to seek a presidential disaster declaration for six western Iowa counties hard hit by ice storms that took down power lines in Carroll, Atlantic and many other smaller towns and rural areas. The counties already have been designated by state disaster proclamations.

David Miller, head of the state's emergency management division, said generators have been dispatched to provide power to isolated farm operations and much of the focus going forward will be on state and local debris removal efforts.

“We've been making progress,” he said. “I'm sure it's not as fast as some people would like.”