Iowa lawmakers question funding for Culver's education plans

State lawmakers generally applauded Gov. Chet Culver's call Tuesday to pump more state money into schools, job creation and other areas, but wondered how much of his blueprint is affordable right now.

During his Condition of the State address, Culver proposed fully funding a 2 percent funding increase promised to K-12 public schools next fiscal year and using at least $100 million in surplus reserves to restore some of the money cut this school year.

“This will be a real shot in the arm for some of our schools, especially in rural districts, which are already cash-strapped with depleted reserves,” the governor said in an address to a joint convention of the 83

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General Assembly and a statewide television audience.

Culver, a first-term Democrat facing a tough re-election battle in November, also pushed efforts to create more jobs, especially “green collar” renewable energy positions, enhance job-training programs, and fund public safety, health care for children and veterans services.

Senate President Jack Kibbie, D-Emmetsburg, called the governor's speech “very good, probably the best one he ever gave” and one that sounded the right themes, especially for growing jobs at a time of high unemployment and economic recession.

By contrast, Rep. Rod Roberts, R-Carroll, who is seeking his party's 2010 gubernatorial nomination to challenge Culver in the fall election, said he thought he heard a re-election stump speech rather than an action plan.

“We'd hoped to have a clearer picture on what might be coming for next year's budget but we're told wait until the end of the month,” he said.

During his 40-minute speech, the governor implored lawmakers to do all they can to support community colleges, private colleges and regent institutions in the face of the state's most difficult budget situation – a funding gap created by eroding tax collections, recessionary affects and past spending decisions.

Culver also asked lawmakers to require that districts facing local budget pressures use shares of their cash reserves and cost-cutting measures before using their spending authority to fund money shortfalls through increased property taxes. His message also sought $15 million to fund the fourth year of Iowa's effort to expand preschool opportunities statewide.

“As governor, and as a former teacher, my commitment to education transcends even our most difficult budget challenges,” Culver said in supporting the 2 percent “allowable growth” commitment and using state reserves to restore some school funding that fell victim to his 10 percent across-the-board cut last October.

House Speaker Pat Murphy, D-Dubuque, said he was supportive of the governor's goals but lawmakers will reserve judgment until they see the entire fiscal 2011 budget plan. He noted it would be difficult to say no to various group's seeking increased state funding if schools get surplus money to deal with cuts in that budget area.

“I think a commitment to 2 percent is just what we need for the basic foundation of education,” said Brad Hudson of the Iowa State Education Association. “That's a great first step and it shows a commitment to the children of Iowa and the public schools of Iowa.”

However, Senate GOP Leader Paul McKinley of Chariton said the governor's approach will continue to saddle property owners with higher taxes.

“I reject the notion that Gov. Culver has balanced the budget without raising taxes,” he said. “Iowans are faced with the reality of higher property taxes and they know better than to believe the governor's hollow rhetoric.”

To fund his education priorities, Culver asked the Legislature to embark on a major overhaul of state government to squeeze hundreds of millions of savings from current operations through increased efficiencies and service-delivery reforms.

Troy Price, Culver's spokesman, said details of how the governor plans to fund state government in fiscal 2011 will be unveiled when he submits his budget proposal to lawmakers by the end of January. Fully funding the 2 percent increase for public schools next fiscal year would cost about $70 million in state aid.

“We've always believed that education is the top priority and the top responsibility of state government,” said Senate Majority Leader Mike Gronstal, D-Council Bluffs. “We support that priority but we anxiously await his budget document to see how he gets that done and to figure out what we can do.”

K-12 schools lost $227.2 million this fiscal year when Culver ordered a 10 percent across-the-board cut to keep the budget balanced after projected tax collections took a half-billion dollar free fall last year. Per-pupil funding for K-12 education stood at $5,768 this school year and is expected to increase to $5,883 per student in fiscal 2011.

According to the Legislative Services Agency, the state is projected to have $406.2 million in reserve and $135.4 million in its economic emergency fund at the end of the current fiscal year. That assumes a $156.3 million transfer from the projected June 30 ending balance.

Culver touted his I-JOBS infrastructure effort -- $830 million in state bonding – that will help rebuild Iowa roads, bridges and other vital systems and help restore communities devastated by the state's worst-ever natural disaster in 2008. He and lawmakers will decide how to spend another $100 million of uncommitted bonding authority this session.

The governor requested funding for community college job training programs, continued support for the Iowa Power Fund to foster “green” jobs, and to provide the Iowa National Guard “every tool they need” heading into a year in which 3,500 Iowa soldiers are deployed to Afghanistan. He also sought authority to shift $50 million annually from the road use tax fund to finance the Iowa State Patrol's operations in coming years to maintain public safety.

To accomplish all he set out to do, Culver urged lawmakers to adopt many of the recommendations made by a consulting firm to achieve up to $1.7 billion in savings over the next five years by reforming, streamlining and downsizing state government. He noted he already signed an executive order designed to save up to $140 million next year and nearly $500 million over the next five years.