Weekly Update from Representative Vander Linden 2-18-2016
Rep. Guy Vander Linden (R)
Funnel week at the Capitol has come to an end. We pushed through legislation to be sure we can debate the issues that matter to you most later in session. Below you will find information about the most recent happenings here at the Capitol. If you have any questions, I encourage you to contact me for information.
Behind the Curtain: The Senate Democrat’s Budget Debacle:
Why haven’t Senate Democrats let Iowans know where they stand on the tax coupling bill? Why hasn’t SSA been settled? Easy…the Senate Democrats have a HUGE budget problem.
Based on their actions so far, Senate Democrats budget plan not only can’t fund 4% SSA, it can’t even fund 2% SSA, plus it wipes out the ending balance entirely with also nearly wiping out the Economic Emergency Fund.
Here’s how it works:
The Senate Democrats’ bill to end managed care along with their two FY 16 supplemental spending bills lowers the FY 16 ending balance to $83.9 million.
After disaster aid and filling the reserve funds, that level is further reduced to $49.4 million to begin FY 17 budget determinations – which are underway right now.
With the ending balance at that level and state revenues not projected to grow as fast as they hoped, the Senate Democrats have a plan that takes $25 million out of the RIIF and drops it into the General Fund. Additionally, they are refusing to take any action on the tax coupling bill. The result of that inaction means Iowans will pay an additional $76 million into the General Fund. This in turn means the Senate Democrats have added about $101 million for more spending.
When you take the December REC estimate along with all of their FY 16 hits to the ending balance AND their addition of $101 million to the General Fund that means – according to their own numbers – the 99% expenditure limitation is $7.402 billion.
Lucky for them their budget targets come out to $7.398 billion which gets them just under the 99% expenditure limitation law…or does it?
They claim to support 4% Supplemental State Aid, but their own targets are short $58.9 million when it comes to actually funding it. And they’ve passed a bill ending managed care which LSA says costs $111 million.
Adding those two additional costs pushes their spending to $7.568 billion – well over their targets and well over the 99% expenditure limitation. $166 million above the expenditure limitation. A number which is so far in the red it not only prevents Senate Democrats from funding 4% SSA, it prevents them from even funding 2% SSA!
But the story doesn’t end there…the money for 4% SSA and ending managed care has to come from somewhere. And that somewhere is the Economic Emergency Fund. Which they spend down to $91 million.
A complete wipe out of the ending balance and decimation of the EEF – even with their revenue “enhancements” – is what the Senate Democrats barreling towards with their actions thus far.
