Sustainable Budgeting Process

Mary Lou Freeman

STATE REPRESENTATIVE

Fifty-Second District

Statehouse: (515) 281-3221

e-mail – mary.freeman@legis.state.ia.us

HOME ADDRESS

203 Villa Road

Alta, IA 51002

Home: 712-732-3781

House of Representatives

State of Iowa

Eighty-First General Assembly

STATEHOUSE

Des Moines, Iowa 50319

COMMITTEES

Natural Resources, Chair

Commerce, Regulation & Labor

Human Resources

APPROPRIATIONS SUBCOMMITTEE

Economic Development

FREEMAN FOOTNOTES
February 3, 2005

Sustainable Budgeting Process
The keyword as we approach the budget process this year is “sustainable.” In order to fully appreciate the situation the State of Iowa is in this year, we need to think of our own personal budgets and how we would responsibly manage a slight increase in our income along with a sizable credit card debt that needs to be repaid.
            Under these conditions, most financial advisors would tell us that the most important thing we need to do is to pay off our debt first. Therefore, we should use that extra income to begin the process of paying off our debt as a priority before we make any other long-term commitments or one-time expenditures of that revenue.
            Secondly, we need to develop a spending plan, or budget, that is sustainable within the revenue we receive. That is the point we are at now in the budget process. The Governor has recommended a 10% increase in spending. This may not be sustainable in future years as we look to pay off our debt as well as continue to fund all of the programs that state government furnishes.
            In the meantime, the Governor’s office is continuing to negotiate with the state employee’s union on the salary package for the next year. Social Security recipients, pay attention! The Governor, in his salary negotiations last year with the state employee’s union, negotiated a COLA (Cost of Living Adjustment) as part of the settlement. This year, that should amount to a 2.5-3 percent increase in pay. Then, on top of it, they get to negotiate for a pay raise for the year. By stating this, I do not mean to downgrade state employees. They do a great job for us. It is, however, quite a bit to ask to receive a salary benefit on top of a COLA.
Please stop by if you are at the Capitol.   I can be reached via email at mfreema@legis.state.ia.us or mfreema@iw.net ; phone 515-281-7481 (weekdays) or 712-732-3781 (weekends).

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