Governor Culver Stands Firm in His Decision to Implement Original $83.7 Million Efficiency Savings
DES MOINES – Governor Culver today reiterated that he will stand firm and will not change the implementation of efficiency savings adjustments he announced on January 3, 2011. He had been asked by a number of parties to make changes to his allocation of the $83.7 million of efficiency savings from SERIP, Executive Order 20, and SF 2088.
“We have every confidence that the Legislature, working with the incoming Administration, will work together to formulate changes they may determine are necessary. Fortunately, with our large ending balance and reserve funds, they will have any resources they will need to make those adjustments,” Governor Culver said. “Our decisions regarding the savings were not easy ones, but we believe they were the right ones. For our administration to do something now would be disruptive to our departments.”
HF 2531 did not specifically exempt the community colleges.
Governor Culver leaves office with an estimated General Fund ending balance of over $514 million this fiscal year, which provides adequate resources to provide supplemental appropriations for community colleges and important programs. The Legislature may consider using their broad authority to make supplemental appropriations to address certain shortages in the current FY 2011, as it has done for many years and during Governor Culver’s service as governor.
On Jan. 3, Governor Culver ordered the Department of Management to implement the $83.7 million of efficiency savings required by state law in HF 2531, which included specific exemptions for Regents institutions and other areas of the budget.
These efficiencies have always been part of the budget for FY 2011 as passed by the Legislature and signed into law. They are not part of any prior across-the-board cut and state agencies have already been anticipating these savings in anticipation of the full implementation of this law. As required by HF 2531, these adjustments can be made only to a department’s operating or administrative appropriations, not to any program appropriation, and are only in the General Fund.
These overall savings are part of the broad efficiency and reorganization initiative that Governor Culver proposed late last year. As a result of SERIP, Executive Orders 20 and 26, and SF 2088, state government will achieve approximately $300 million in efficiencies in all funds in FY 2011, which is higher than projected at the time of SERIP and SF 2088 were signed into law.
Source: Iowa Governors Office
