Democrats issue fiscal 2011 spending targets

DES MOINES – Majority Democrats in the Iowa Legislature today unveiled spending target for their fiscal 2011 budget that are nearly $261 million below current year levels.

Top House and Senate Democrats said their budget targets in seven general fund areas are part of “a fiscally responsible plan to help middle-class families, small businesses and other Iowans recover from the national recession.”

The spending targets announced today are intended to guide the work of legislative committees as they develop the fiscal 2011 state budget.

 “Democrats remain more committed than ever to balancing the budget without raising taxes, continuing to listen to Iowans, and creating more accountability in state government,” said Rep. Jo Oldson, D-Des Moines, chairwoman of the House Appropriations Committee. “We are crafting a responsible economic plan that includes spending less from the general fund next year than we did this year.”

Details provided by Democratic leadership indicate proposed general fund spending in areas of education, justice systems, economic development, health/human services, administration and regulation, and agriculture and natural resources will total about $2.5 billion – roughly $260.8 million below Gov. Chet Culver's revised funding level for the current budget year of $2.776 billion.

The various House-Senate budget subcommittees now will begin crafting specific legislation based upon their priorities.

Oldson and Sen. Bob Dvorsky, D-Coralville, chairman of the Senate Appropriations Committee, said the fiscal 2011 budget work will include the following:

• House and Senate approval of a plan to streamline state government and save taxpayers more than $120 million.
• An early retirement plan that will provide nearly $60 million in annual savings already signed into law by Gov. Chet Culver.
• Savings totaling more than $70 million enacted through Culver's executive order.
• Conducting a review of corporate tax credits to determine which ones aren't creating jobs or accomplishing their goals, and proposed legislation to fix or eliminate ineffective corporate tax credits.

“We face significant challenges, but we're ready to work with Gov. Culver and Republicans to focus on the priorities of the middle-class Iowans and small businesses,” said Oldson.