UPFRONT by State Representative Dave Heaton

February 14, 2011

Title:  Stand Firm

The biggest issue for the Legislature this year is what do we do about the deficit we face in the coming year.  The amount is not small.  It amounts to 16 percent of our current state budget.  The challenge is clear, we must find $700 million to fill “the hole” or reduce the budget to reflect revenue. 

This is the question that must be decided.   To resolve the budget debate, do we want a budget that would spend more than the state takes in, continuing the practice of our state expenditures being placed on “Master Card,” or do we pay our debt, “bite the bullet” and pass a budget that spends within our state means?  

The House feels that to reduce the budget by $700 million at one time might be too severe.  We propose to do it in two steps; first, we would reduce expenditures in the current 2011 budget by $51.8 million with additional reductions in the next two years that would total $485 million. 

A key piece of the initial House budget proposal is  what to do with the ending balance of 2010, and projected ending balance of 2011, that will total $283 million.  Spend it and treat it as one-time money for ongoing expenditures, or return it to the tax payer, not with a check but in some form of tax relief?  The House has determined after much debate, that the ending balance belongs to the tax payers and should be returned in one form or another.

Two weeks ago, the Governor presented his budget request.  It was patterned after the Revenue Estimating Conference (REC) estimated revenue for 2012 and complies with the Legislative requirement, and a budget that is no more than 99 percent of estimated revenue.   The Governor’s recommendation is just over $6.1 billion dollars, or a decrease of $185 million dollars compared to the 2011 budget.

This last week the House released their budget targets in response to the Governor’s budget request.  Iowa would spend $5.9 billion dollars in its next fiscal year, a dip of almost $350 million dollars, which is 98 percent of projected revenue.  This house budget proposal does not include details of the proposed target.  That will be the job of the respective budget subcommittees to provide the line item expenditures that will meet their targets.  I am chairman of the Health and Human Services subcommittee, and I have to have a proposal in place by Feb 23.

Senate Democrats will release their budget targets sometime this week. 

Why is the House proposal lower than the Governor’s request?  Because we recognize that to reach agreement is a bargaining process.  Some things we will bargain for, and some things we won’t. This will be our beginning point of the debate that will go on to the end of the session.

One thing will remain very clear in the debate that will ensue.  This House will not go home with a budget that spends more than 99 percent than is estimated the state will take in.   It is the law and the House intends to stand by it. 

My mailing address is:

Dave Heaton, State Representative, State House, Des Moines, Iowa 50319

Phone:  515-281-7327 ~ Fax: 515-281-6958

E-mail:  dave.heaton@legis.state.ia.us

Web page: http://www.daveheaton.net

If you have any issues or concerns, please contact me.

Be sure to include your name and address with any communication to my office.

State Rep. Dave Heaton, R-Mount Pleasant, represents the 91st House District,

which includes all of Henry County and the northern half of Lee County.

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