Budget panel chairs predict 'incredible' cuts will limit services

By James Q. Lynch 

The Gazette

DES MOINES – Speculation about more than 300 lay-offs at the Department of Human Services is premature, but a key legislator predicted Wednesday there will be “dramatic change” in how health and human resources services are delivered as a result of state budget cuts.

An “incredible” budget cut in the DHS proposed budget could mean there will be 250 to 400 fewer positions at DHS, according to Sen. Jack Hatch, D-Des Moines, co-chair of the health and Human Services Appropriations Subcommittee, He was reacting to reports that after a partial budget was released showing cuts of $172 million to the department, DHS Director Charlie Krogmeier said 300 staffers could lose their jobs.

Hatch expects the number of DHS staffers taking advantage of a recently approved early retirement program to exceed lay-offs. Still, he said, the impact will be felt. For example, while immediate issues in child abuse, child care and domestic abuse will be addressed, long-term issues, such as counseling, “will be slowed down.”

Legislative leaders lowered the health and human services budget target by $172 million and federal Medicaid funds could drop by $379 million. Lawmakers are looking to $200 million in rainy day funds, a $27 million supplemental appropriation and a variety of one-time money to get within $23 million of the current budget level.

Hatch was quick to say health and human services is not alone in seeing its budget whacked as the Legislature tries to come to grips with a severe downturn in state revenues.

Education Appropriations Subcommittee Co-Chairs Sen. Brian Schoenjahn, D-Arlington, and Rep. Cindy Winckler, D-Davenport, are dealing with budget cuts that will leave the state regents universities with $102 million less than they are receiving this year. Community colleges will get $21 million less. Still, they are glad not to be in Hatch's shoes.

“Look at what other committees are dealing with, I think it will prove out in the end we will have done what we could, the best we could, with our resources for education,” Schoenjahn said.

He wouldn't rule out more tuition hikes, but said that will be up to the Board of Regents. Schoenjahn wouldn't say Iowans are being priced out of higher education, but said the cuts will be felt.

Still, the budget will reflect that Iowans and the Legislature believe education is a priority, the co-chairs said.

“We are a state that values education at all levels, yet we don't have the dollars,” Winckler said.

“Ask any budget subcommittee chair,” Schoenjahn said, “they'll say public safety is important, transportation is important, health and human services are important.

“At the end of the day, we have to move Iowa forward with a balanced budget,” he said.