Iowa state agencies absorb deeper cuts

By Rod Boshart, Gazette Des Moines Bureau

DES MOINES - Iowa state agency managers were struggling Monday to absorb the final $11.5 million in state budget cuts that are required to cover lower-than-projected tax receipts for the budget year ending in four months.

About $7 million of the spending reductions were aimed at non-higher education sectors with the state Department of Human Services tasked with covering half those cutbacks.

Amy McCoy, DHS public information officer, said her agency would hold open current staff vacancies and reduce support in field and general administration to save more than $2 million.

The agency also will save $1.2 million due to pharmacy rebates under managed care coming in lower than expected and another $100,000 due to lower-than-projected use of the Family Investment Program, she said.

'At this time, we don't expect an impact to services or benefits for members,” McCoy noted, adding 'it's my understanding that they aren't planning layoffs.”

Alex Murphy, a spokesman for the Iowa Department of Public Safety, said he expects 'minimal to no effect” even though the Iowa State Patrol was pared back by another $537,000. He said staffing levels would remain unchanged until July 1.

'There will be no layoffs or furloughs. We will not fill vacancies or make promotions for the remainder of the fiscal year, and will reduce travel and other expenses as needed,” Murphy said. 'Our plans for the Basic Academy are continuing, so that we can replace the troopers and special agents who have retired or left the department. The number of recruits will depend on the (fiscal 2018) budget appropriation.

Sgt. Nathan Ludwig of the Iowa State Patrol said the extra cuts 'will be dealt with through vacancies within the patrol.”

Lettie Press, a spokeswoman for the state Department of Corrections, said the bulk of her agency's cuts were in the initial $5.5 million de-appropriation, which prompted the suspension of services at four correctional facilities to best preserve the operational integrity of the remaining institutions and community corrections.

'Implementing the budget adjustment plan has been a moving target due to retirements and staff attrition that continue to occur,” she noted, adding 'we'll know more in the coming weeks” regarding an additional $250,000 in cuts.

Staci Hupp of the state Department of Education said the $690,000 in additional cuts mostly relate to 'flow-through dollars” or where the agency contracts for services.

'Our approach to these cuts is similar to the first round of reductions. We're taking steps to minimize the impact to Iowa students, our department staff, and to programs that have federal matching or maintenance of effort requirements,” she said.

l Comments: (515) 243-7220; rod.boshart@thegazette.com