Budget cuts to have big impact on Iowa

Fewer school fire safety inspections, drug busts and OWI violators taken off the road, cuts in assistance for preschool and college financial aid, and higher school lunch prices are some of the implications of Gov. Chet Culver's 10 percent across the board budget cut.

State departments' plans for coping with the governor's cuts also include laying off 791 state government employees and leaving another 529 positions vacant.

The preliminary plan also indicates fewer restaurant inspections, cuts in some family assistance programs, less money for community economic development activities and delaying implementation of fingerprinting and national background checks for child care employees.

Culver, whose plan calls for a year-end balance of about $150 million in anticipation of another difficult budget in fiscal 2011, said his goal is to do everything to preserve essential services and minimize layoffs.

“It is very important to note that this is the starting line, not the finish line,” Culver said Wednesday when the recommendations to chop up to $565 million in general-fund spending were made public.

He ordered executive-branch departments and agencies, excluding the Board of Regents, statewide elected officials, and the Legislative and Judicial branches, to identify cuts after state tax collections took a nose dive due.

His office won't be spared. Culver cut his and his chief of staff's salaries 10 percent and other staff will take up to seven days of unpaid leave.

He's concerned about the “disproportionate impact” on public safety. The Department of Corrections, with 4,200 employees, recommended 515 layoffs and leaving 262 vacancies open.

The Department of Public Safety, which recommended 53 layoffs, was able to prevent further cuts by securing a $4 million federal grant.

Culver also opposes cuts in services to children and vulnerable adults. Department of Human Services Director Charles Krogmeier said plans were made for “preserving service and protection for Iowa's most vulnerable people.”

He targeted DHS's least effective programs and those that serve the fewest people. In addition, DHS is proposing $18 million cut for providers of Medicaid and child welfare services.

DHS has 264 vacant positions and will cut another 79 employees, most of them at juvenile facilities in Toledo and Eldora, Krogmeier said.

The impact will be felt beyond Des Moines, John Frew, Culver's chief of staff, said. Some courthouses or state agency offices may operate four days per week and some services may be consolidated.

Culver wants to force school districts to spend their reserves before raising property taxes to cover state aid cuts. However, Frew said, about 100 of Iowa's 362 K-12 school districts don't have enough surplus to cover the cuts. The cuts are equivalent to 4,000 teachers' salaries, according to the Department of Education.

“It's not an automatic that they simply raise property taxes,” he said. “It may well be that they chose to cut services.”

Community colleges face a similar challenge. At Kirkwood Community College in Cedar Rapids, there are no plans for a mid-year tuition hike or layoffs to cover a $2.4 million cut in state funds, according to Steve Ovel. In anticipation of cuts, the school reduced spending $1.25 million last year and was planning on a similar cut this year. Culver's cut will force the school to double that this school year.

Regardless of the department or service, “there isn't a whole lot of wiggle room when you do a 10 percent across-the-board cut,” said Tom Newton of the Department of Public Health.

Fewer people will receive substance abuse treatment services, there will be less funding for substance abuse prevention, tobacco prevention, tobacco cessation services, local public health nursing visits and home health care aide visits, he said.

“Although (Iowans) may not feel it directly on them, they probably know somebody who will be impacted by the reductions in services that we have,” he said.

Among those affected will be members of the American Federation of State County and Municipal Employees Council 61. The state should treat its layoffs the same as it would a major plant closing and provide appropriate support to laid off workers.

The following is a breakdown of how cuts will affect various state departments:

Corrections – A preliminary plan would cut mean the layoff of 515 workers in Iowa's corrections system that officials say could negatively impact safety. For instance, the state's maximum security prison in Fort Madison would see a reduction in force of 80.5 positions, which officials said would create “serious safety concerns for the public, staff and offenders.” The state's local community corrections districts would also see staff cuts. These agencies monitor offenders on probation and parole and offer treatment services meant to help reduce odds that an offender will commit new crimes.

Human Services – The state's human services department would see the layoff of 79 workers, with most coming from the juvenile facilities in Toldeo and Eldora, the mental health institute in Independence and the department's central office in Des Moines. Officials stressed they are trying to implement the cuts by preserving services to the state's most vulnerable. Health care providers would see a 5 percent cut in the reimbursement rate they are paid to treat Medicaid patients this fiscal year, although some would see a lower reduction. A child support call center in Marshalltown that employs 50 people would be discontinued. Funding for juvenile justice drug courts would be discontinued, based on results of a study that showed it did not reduce new offenses.

Public Safety – A total of 20 troopers with the Iowa State Patrol would be laid off, along with 20 gaming officers who are charged with maintaining the integrity of Iowa's state-licensed casinos. Officials say the layoff of troopers would mean prolonged emergency response times, 104,000 fewer traffic contacts each year and 595 fewer operating while intoxicated arrests each year. Layoffs of troopers would also mean a reduced ability to staff such events as the Iowa State Fair and football games at Iowa and Iowa State.

Seven other employees within the state patrol would be laid off and one unnamed state patrol district office would be closed.

Two narcotics officers and two criminal intelligence analysts would be among those laid off. A fire inspector and secretary in the State Fire Marshal's office would also lose their jobs.

Iowa Public Television –IPTV is proposing a reduction of its local program budgets by 23 percent for the current season, reducing staff by one. Local programming already has seen cuts and a reduction in episodes of the long-running public affairs program “Iowa Press” and of “The Iowa Journal,” which would end as a weekly offering beginning June 30. Under the plan, IPTV would stop overnight broadcasts, signing off around midnight and resuming around 6 a.m., and would mean the loss of one job. IPTV also is looking at reducing staff by another six positions, although anticipated federal funding could push that into the future.

Education – The state is proposing reducing state aid to local K-12 schools by more than $238 million. The size of the cut is compared to the salaries of roughly 40,000 teachers, although the impact on staffing would be less severe. The impact on each district depends on its cash reserves and other factors.

A $15.8 million reduction in community college funding would mean cuts in programming and staff and increased tuition rates, or both, officials said. Iowa already has one of the highest community college tuition rates in the country. Preschool cuts of nearly $2 million would affect 400 4-year olds. Cuts in state subsidies for school lunches would reduce federal matching funds and would make school lunches more expensive, officials said.

Public Health – Proposed budget cuts would mean 3,600 fewer children would be tested for lead poisoning, and 100 lead-poisoned children would not see appropriate follow-up. About 45 fewer people would be tested for Hepatitis C, and 57 fewer people would be vaccinated for Hepatitis B. Almost 400 fewer people would be treated for gonorrhea, Chlamydia and latent tuberculosis. A total of 547 fewer Iowans will receive substance abuse treatment, and 4,300 methamphetamine users will not get extended treatment.

Governor's office – Gov. Chet Culver's office would find savings of over $292,000 from a variety of cost-cutting measures. Culver is taking a pay cut which amounts to $7,000. His chief of staff, John Frew, will see a salary reduction of $8,900. Staff reductions, pay cuts and 7-day unpaid furloughs taken by governor's office staff will save $227,500. Nearly $20,000 will be saved by reducing administrative costs, which include printing, copying, office supplies and travel.