Republican lawmakers aim for larger budget cushion

DES MOINES - Legislative Republicans and Gov. Terry Branstad have agreed they will spend $7.245 billion from the state's general fund next fiscal year - a target that is $38.6 million lower than Branstad's already revised plan and about $15 million less than current funding.

Rep. Pat Grassley, R-New Hartford, and Sen. Charles Schneider, R-West Des Moines, told reporters Wednesday they're sticking with an additional $40.1 million commitment made earlier to K-12 schools in fiscal 2018, but they're hesitant to commit to Branstad's call for a 2 percent hike for both K-12 schools and higher education in fiscal 2019.

'We don't want to over-promise as has been done in the past. We want to make sure that when we set a budget number for education, that it's something that we can keep,” Schneider told a news conference.

K-12 education was one of the few areas spared from reductions in the new targets.

Branstad had sought legislative support to spend more than $7.283 billion for the fiscal year beginning July 1. Currently, the state is slated to spend nearly $7.26 billion for the fiscal year that ends June 30.

'House and Senate Republicans continue to believe that the state budget should be managed just like families and businesses manage their own,” Grassley and Schneider said in a joint statement. 'This budget takes a responsible and cautious approach to spending in recognition that revenue may continue to come in less than anticipated.”

Branstad issued a revised budget plan last month that preserved the 1.11 percent increase for K-12 education and addressed other priorities. But the governor had to pare back the fiscal 2018 request by $173 million to reflect slower-than-expected revenue growth, leaving only about $24 million in new money after earmarking $131 million over two years to refill reserves needed to cover a current shortfall.

The GOP plan issued Wednesday includes fully funding the additional $40 million passed earlier this session for K-12 schools as well as an initial $20 million installment to repay the cash reserves in fiscal 2018, with more payments coming in fiscal 2019.

Schneider said GOP budget-makers were looking to leave a larger year-end cushion in case revenues failed again to keep up with projections.

The GOP legislative targets are $11.8 million below the governor's suggested $920.25 million for education, and $10 million below his proposed $1.776 billion for health and human services. Republicans also were $6.72 million below the governor's $741.7 million for justice systems, $5.28 million lower on agriculture and natural resources, $2.76 million lower for economic development and $1.33 million lower for administration and regulation.

David Roederer, director of the Department of Management and Branstad's budget director, said the governor's office has had discussions with legislative Republicans to reach consensus.

'These are more global numbers that they're talking about and we'll continue to work with them as they start working through their subcommittees and trying to decide how they're going to allocate those funds,” Roederer said.

Minority legislative Democrats were critical.

'Republicans are once again balancing the budget on the backs of working Iowans,” said Sen. Joe Bolkcom, D-Iowa City, ranking member of the Senate Appropriations Committee.

'Senate Democrats will not support drastic cuts that threaten public safety, the quality of education, and the safety net for seniors, children and vulnerable Iowans,” Bolkcom added. 'These budget cuts could have been avoided if Republican legislators, Gov. Branstad and Lt. Gov. Reynolds had delivered on their promises to increase family income by 25 percent and create more than 200,000 new jobs in Iowa.”

His House counterpart, Rep. Chris Hall, D-Sioux City, said the GOP targets were an indication that Republicans want Iowa families 'to pay for corporate tax giveaways that have put the state budget in the red” while failing to build a skilled workforce or protect Iowa's most vulnerable citizens.

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