SF 2117—GOP FY18 Deappropriations.
FLOOR ACTION:
SF 2117 is the Republican plan to cut appropriations to various departments and state agencies for FY18, transfer money from the General Fund to the Skilled Worker and Job Creation Fund, and make supplemental appropriations.
The bill, as amended by the House amendment:
- Reduces FY18 General Fund appropriations by $25.5 million;
- Transfers $10 million from the Skilled Worker and Job Creation Fund to the General Fund;
- Makes supplemental appropriations to the State Public Defender’s Office for Indigent Defense ($1.7 million) and to the Department of Administrative Services for utilities costs ($451,871).
The estimated ending balance is $31.84 million. The bill is effective upon enactment.
DIVISION I–APPROPRIATION REDUCTIONS
Significant General Fund budget reductions include:
- -$10.9 million from the Regents (University of Iowa and Iowa State only)
- -$4.3 million from the Department of Human Services
- -$3.4 million from the Department of Corrections
- -$1.6 million from the Judicial Branch
- -$784,830 from the Department of Education
- -$662,871 from the Department of Public Health
- -$528,271 from the Department of Revenue
- -$500,000 from Community Colleges General Aid
Department director and DOM authority: The bill gives department directors authority to implement the reductions within their departments as they see appropriate, in consultation with the Department of Management (DOM).
Language to departments regarding reductions:
- Department of Education cannot reduce the standing appropriation to non-public school transportation.
- Department of Human Services cannot reduce benefits under the Medicaid state plan and approved waivers.
- Department of Justice (Attorney General’s Office) cannot reduce expenditures for victim assistance grants.
- Department of Public Safety cannot apply reductions to the State Patrol.
- DOM, in consultation with the departments and Judicial Branch, must identify and implement reductions, and file a report with the Legislature within 15 days of the effective date of the bill. DOM must reduce standing appropriations to departments and state agencies.
Transfer of Skilled Worker and Job Creation Fund and the Reduction of High Quality Jobs: The bill transfers $10 million from the Iowa Skilled Worker and Job Creation Fund to the General Fund. The appropriation for the High Quality Jobs Program, which receives funding from the Skilled Worker and Job Creation Fund, is reduced from $15.9 million to $5.9 million.
Graduate Medical Education and Disproportionate Share Hospital Fund: Starting on May 1, the University of Iowa Hospitals and Clinics and Broadlawns must transfer to the Medicaid program the non-federal share of Graduate Medical Education (GME) and Disproportionate Share Hospital payments (DSH). Increased costs for UIHC and Broadlawns for the rest of FY18:
- UIHC: $1,142,525 (GME) + $146,437 (DSH) = $1,288,962
- Broadlawns: $112,556 (GME) + 11,806 (DSH) = $124,362
- Total: $1,413,324
Repeal Gubernatorial Transition Funding: The bill repeals an appropriation of $150,000 to the Offices of the Governor and Lieutenant Governor for FY18 for expenses incurred during the gubernatorial transition.
DIVISION II–SUPPLEMENTAL APPROPRIATIONS
- $1.7 million to the State Public Defender’s Office for the Indigent Defense Fund for eligible adults and juvenile criminal cases.
- $451,871 to the Department of Administrative Services for the utilities costs.
- $64,257 to the Pharmaceutical Settlement Account. Not a General Fund supplemental.
DIVISION III–Economic Emergency Fund Changes
The Republican proposal makes significant changes to the Governor’s ability to transfer funds from the Economic Emergency Fund to the General Fund. The current maximum is $50 million, which is changed to 1 percent of the adjusted revenue estimate for the fiscal year in which the appropriation is made.
For the transfer to be made, the balance of the General Fund must be negative at the end of the fiscal year, and the Governor must issue a proclamation, notify the Legislative Fiscal Committee and the Legislative Services Agency of the negative balance, and bring the General Fund into balance with the transfer.
The bill eliminates two of the four requirements for the Governor to make the transfer, including that the accruals were at least one-half of 1 percent less than the estimate of the fiscal year’s third quarter.
A retroactive transfer of $13 million from the Economic Emergency Fund to the General Fund is made for September 28, 2017.
DIVISION IV – EFFECTIVE DATE
The bill is effective upon enactment.
[3/21:28-21 (No: Democrats, D. Johnson; Vacant: Dix)]