New State Revenue Numbers

The Revenue Estimating Conference met last Friday morning and as expected, downgraded revenue estimates for both FY 09 and FY 10.

FY 2009 was decreased by $130 million compared to the December estimate. The current balance is $30 million, so we will need to make up at least $100 million through transfers or reductions in spending. One idea thrown out by the Governor's appointee was reducing the Medicaid spending in FY 09 and replacing it with federal stimulus dollars.

FY 2010 was decreased by $270 million compared to the December estimate. ($130 million of the amount is carried forward from FY 09.) That means that the joint budget targets released by the Democrats a few weeks ago are now $270 million more than revenue will allow them to spend. The Governor now has 14 days to resubmit his budget and the Democrats will have to release revised budget targets reflecting the new estimates.

The bottom line is that the state has a $1.1 billion spending gap to deal with over the next 15 months. This size of gap on a budget that is approximately $6 Billion will create some severe problems.

There is some talk that we may use federal stimulus dollars to fill in some of the gaps.

This would only be a temporary solution since those dollars will likely not be available the following year. Senate Leader Mike Gronstal has also been talking about eliminating federal deductibility on state tax returns. This tax deduction is worth around $600 million.

I think raising taxes at this time can only harm the economy more. We should be looking at tax cuts specifically targeted towards job creation.

Legislature Again Takes on the Open Meeting-Open Records Bill

The State Government Committee is again taking on open meetings and open records issues. HSB 234, as amended, passed the State Government Committee but will likely be sent back to the committee for additional work. The subcommittee, consisting of Representatives Lensing, Isenhart, Koester, Mascher, and Pettengill, have already started holding additional subcommittee meetings.

The bill establishes the Iowa Public Information Board. The board shall consist of five members appointed by the Governor and confirmed by the Senate. The purposes of the board is to provide an alternative means by which to secure compliance with the open meeting and open record laws through an efficient, informal, and cost-effective process for resolving disputes.

The bill gives the board the power to: employ any employees necessary to execute it’s authority; adopt rules; issue declaratory orders with the force of law; receive complaints and if probable cause can prosecute; issue subpoenas enforceable in court; issue orders; represent itself through the Attorney General or other attorneys retained by the board at its option; train lawful custodians of government bodies; disseminate information to the public about the public’s right to access government information; prepare annual reports; and make recommendations to the GA proposing further legislation.

Finally, the bill provides for a $6,000 appropriation to help the board begin operations.

Other more significant provisions of HSB 234 include:

Iowa Student Loan – Makes the Iowa Study Loan Authority subject to open meeting and open records laws.
Penalties – The bill increases the penalties for a member of a governmental body who knowingly participates in a violation by increasing it to not more than $2,500 and not less than $1,000. The penalties shall not be assessed if one of the following additional options applies:
- Formal Opinion of the Iowa Public Information Board
- Written or Formal Oral Opinion of the body’s attorney
- Advisory Opinion of the Iowa Public Information Board, the Attorney General, or the attorney for the government body given in writing.
Records Request Time Limitations – The bill addresses the time limits for records request. Upon receipt of request, the person shall make the records immediately available. If not immediately available, the records shall be available no later than 5 days after the request. If the lawful custodian is in doubt whether the record is a public record or whether the requester should be permitted to examine or copy an optional public record, the lawful custodian shall make the determination within 10 days. Examination or copy shall be made available within 5 days. If the custodian denies the request, the custodian must provide the requester with the reasons why. If custodian does not meet the time limits the request shall be deemed denied and the requester is eligible to file a complaint.
Confidential Information and Applications - This section allows an application, if requested by the applicant, to be exempt from the open record laws until they are a finalist. An individual is considered a finalist when there are 5 individuals under final consideration for the position. If there are five or fewer applicants for a position shall be considered finalist. The identities and the qualification of the finalist shall be made available for public inspection at least three business days prior to a final decision. Documents relating to a government body’s evaluation of the qualifications and merits of an applicant for employment by that body.

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

Home phone: 515-382-2352

E-mail: Dave.Deyoe@legis.state.ia.us